Government shows goods up to 175 euros not affected by 100% tax

The Kosovo government has announced all citizens, and especially the Serb residents in the northern part, who are protesting three days against the customs fee, to use the legal right to import goods from Serbia and Bosnia and Herzegovina to the value of 175 euros, which they are not obliged to pay any customs duties.

Since setting the fee 100 per cent for products imported from Serbia and Bosnia, Serb residents of the northern part of Kosovo have protested and complained that the Kosovo Government's decision has made life-needed supply difficult.

However, the Government's decision does not affect citizens' purchases of up to 175 euros, which applies to purchases from other countries, but affects only imports of products originated from Serbia and Bosnia for commercial purposes.

In northern Kosovo, some Serbian citizens say goods reserves have begun to be spent. Meanwhile, at the protests this week, Serbian citizens in northern Mitrovica were holding placards that read: our “Our children are hungry”.

Shops in northern Mitrovica are mainly supplied with products from reserves, but traders say they can last only for a certain time.

Dragan Nedeljkovic, businessman from Zvecan, says he currently has reservations, but that those days, according to him, are being spent. It shows that prices in general have not increased, excluding milk, flour, and some other articles that were expensive after the original tax decision of 10 percent.

If you continue as promised, there will be problems because the reserves are being spent. We may have the supply by the end of December”, he said.

Meanwhile, Miroslav, a resident from northern Mitrovica, says the situation is currently not alarming, but expects Pristina to withdraw the decision on tariffs.

Whatever we do, we have to find ourselves somehow. We still have products for now, but it can get worse. We want the normal situation back”, he said.

After the confusion caused by the establishment of a 100 per cent customs tax on products from Serbia and Bosnia, the Government of Kosovo through a statement had clarified that the move was not directed against Kosovo Serb citizens.

Naim Huruglica, former director of Kosovo Customs, says that based on monthly income in Kosovo, the value of 175 euros, is valued enough for external purchases that citizens achieve.

It explains that under the Customs Code and Kosovo Actis, which has been implemented since 2008, goods carried in the personal luggage of travellers coming from another country are allowed to free from import duties if they do not exceed the value of 175 euros, but on the condition that those imports are not commercial nature. This applies to all citizens of Kosovo, regardless of nationality or citizenship.

“If a citizen tries to spend up to 20 times a day buying up to 175 euros, then the suspicion arises that this is being done for trade or other”, Huruglica said, clarifying that for these cases, customs officials can also apply the tax measure.

From his experience as Kosovo Customs director, Huruglica says that citizens who live near the border in Serbia, whether in the northern or southern part of Kosovo, have usually taken advantage of the import of household needs products without paying customs duties.

According to him, the majority of citizens of Serbian nationality living close to the border with Serbia, mainly exploits a market day in Serbia for supplies there.

In addition to goods being carried through the car luggage, Kosovo's current law enforcement, zero fee goods are also donations. That means donations to churches and religious objects; diplomatic or consular missions that are for official use.

Also, issued from taxes are remittances to KFOR and EULEX and specific imports of goods for which the Kosovo government decides should be used for humanitarian purposes and which are not for sale and consumption in Kosovo.