Producers in Kosovo aim to be equal to regional ones

This package included release from customs tax for all products considered to be raw materials for production, then changing/fulfilling the list of products subject to the reduced 8 percent tax rate on Added Value (TVSH).

Also envisioned is the creation of new tariff codes for certain products, according to European Union practices, lowering excises in soda and non-laughing, fiscalization, and others.

Deputy Prime Minister in the outgoing Government of Kosovo Ramiz Kelmendi tells Radio Free Europe that this package makes Kosovo's production industry equal to all producers of countries in the region.

“fiscal package 2.0 is one of the biggest decisions ever made in the function of supporting local productivity”.

After the passage of this package, I can say that all the production components, repromatials, will not have customs. A implementation deadline is needed, but all of the country's producers in Kosovo will be equal in the Kosovo market, with regional producers and European Union states producers”, Kelmendi says.

Representatives of the business community and producers in Kosovo also hope that the approval of this package will improve the conditions, simultaneously stimulate the business producers involved in producing products, “Made in Kosova”.

Kosovo Business Alliance Chairman Agim Sahini told Radio Free Europe that approval of this package has been the current requirement of Kosovo business officials.

However, Sahin believes the effects will be positive from the implementation of this package.

This package will equal the production and competitiveness forces of local producers, in the face of competition that has come from regional and European states. But, which in some cases the local producer has lost its competitive power, but also the consumer's trust in local production, as the market has proved more expensive”, Shahini points out.

Some of the local producers, while not having much information on package content, hope that their demands have been taken on the basis.

Osmani Union owns the company “Laberion”, which deals with the production of natural fluids. It, however, is reserved for measures to facilitate doing business.

We as producers have never demanded more than the countries of the region. Once we have the same conditions, we will immediately be able to create new jobs, have cheaper products on the market”, Osmani tells Radio Free Europe.

All of this equals the producers of countries in the region and Europe. We have the biggest competition from Serbia and Macedonia. I think there is still much to be done in terms of fiscal policies”, he says.

Otherwise, in September 2015, the implementation of the first fiscal package has begun, which, according to competent authorities, has had positive effects. According to them, this package has helped formulate businesses by changing the Law on Added Value Tax, respectively.

Kosovo's outgoing Minister of Finance in Government, Avdullah Hoti, has said that from these reforms businesses have benefited 47m euros in various releases for raw materials and manufacturing machinery. And 21m euros, according to him, have benefited citizens as a result of the release of the State Value Tax from 18 to 8 percent.