VAT in Serbia to grow from 8 to 10 percent

Serbian Finance and Economy Minister Lazar Krstic said Tuesday that one of the economic measures would be to increase the lower rate of value added tax from 8 to 10 percent, which should add EUR 200 million to the budget.

Krstic pointed out at a session of the Serbian government that budget revenues had to be increased, adding that their amount cannot even be estimated in Serbia.

- How can we plan expenditures if we don't know how big our revenues are? - the minister asked.

He noted that the price of the consumer basket that cost RSD 65,000 at the moment would be increased by RSD 450 due to the VAT increase.

Krstic stressed that major problems such as grey economy and smuggling of tobacco and oil derivatives mut be solved urgently.