Fiscal Pack 2.0, dead document without administrative guidelines

The second fiscal package approved long ago in the Government of Kosovo consists of the 22 measures list. Some of it has come into effect with the Government's decision, while some 70-80 percent of the fiscal package will be done with administrative guidelines that are still missing.

The part which cannot be implemented until the Kosovo Parliament is established is part of changing laws.

The chairman of the Kosovo Economic Ode, Safet Gerjaliu, changes to fiscal packages 1 and 2 have called it the most successful changes in this government.

I believe that one of the greatest achievements of the last government has been in addition to financial discipline, halting massive tendero-mania, has definitely been a fiscal package 1 and 2. For its best effects, businesses that have benefited and advanced will argue for themselves. I want to believe that the 2nd package that was approved in the Government of Kosovo should be the first priority of any government to come in the future, because that's how we need to be serious about the economic development process, serious in front of the private sector. We must be serious in the face of the state's future that will be based on private sector empowering, in particular the production sector”, Gerjaliu said.

He has added that the future of economic development in the country seems based on the private sector and the generation of new jobs in the private sector.

Ismet Mulaj, executive director at the Kosovo Afarism Oda (OAK), has praised as a successful achievement of the government but, according to him, remained a challenge to their optimism with administrative guidelines.

The real fiscal package 2.0 is a huge achievement in business interest, but the big challenge will be its optimism with administrative guidelines that accurately determine the business interest they have for fiscal packages. As a measure, they're in order, but if they don't undergo concrete administrative guidelines by listing the first material that should be released from the VAT, which should release all those promised to business, if the Administrative Guides, which are previously provided with fiscal packages, this is a dead document. If we have seen them, the measures are of interest in business, provided to help Kosovo's production sector. Also in a way to balance the manufacturer with the importer, but all this is in expression of the Government's will”, Mulaj said.

According to him, they have no information whether the Finance Ministry has begun to concreteise administrative guidelines that should be adopted in the future.

In time, incumbent Minister of Trade and Industry Hykmete Bajrami has said he is working on some administrative guidelines in order to start implementing new measures as soon as possible.

According to her, legal changes needed for these measures remain for the new government.

“is currently working on Administrative Guide, recognition of decay, technical damage or evacuation of products, including technical losses such as fuels and other products. Working groups have been formed, about 70-80 per cent of the fiscal package will be made with the UA, and part of it has entered into force with the government's decision. The part that cannot be implemented until parliament is established is only part of changing laws. I believe that then is the obligation for the new parliament since it has become a pilot co-operative with the business community. They're simply not ideas which have come from the Ministry of Finance and other ministries, it's one request from one of the business community. We know that the business community will also consist of the new Government on their bid“, Bajrami said.

Contrary to earlier statements by incumbent Finance Minister Avdullah Hoti, as the first and most important measure, is the release of customs tax for all products considered raw to the production process. This means releasing production costs to our producers about 10 per cent. The second is removing the excise rate in the mazut for production purposes, setting the production rates that companies use. Third is reduction from 18 per cent to 8 per cent of T VSH for cultural, artistic, sports, ecomotive tourists, recreation and fish processing in Kosovo.

The fourth is the Administration Guide for Tax Breaks to promote investments in Kosovo's strategic sectors, such as agriculture, tourism and other information technology.