Patriotism is about poverty: Tax on Serbia, boost product prices

Trade and Industry Minister Andrew Shala on Tuesday proposed to the government cabinet the deployment of the 10% move for several products produced in these two states. This measure is decided on milk and milk products, water, cookies, construction materials, and liquids produced in these two countries. But this measure is exempted from products of international interiors produced in Serbia and Bosnia and Herzegovina, two states that have not yet recognised Kosovo's independence.

Upon making that decision, Kosovo Prime Minister Ramush Haradinaj said countries anywhere in the world that are at enmity impose sanctions. “There are hundreds of millions of euros Serbia allocated to the Kosovo market, with our money they are taking the actions that they are trading”, Haradinaj said. After that decision, according to Haradinaj, any goods that will be introduced from Serbia will be irreversible in our market.

However, University Economics Professor Safet Mervoci said he wishes that this decision by the Kosovo government will be based on good expertise, because as he said as CEFTA countries has rules of respect responsibility.

Merovci sees this decision as a policy of the population saying it may be fair in the short term, but as he says if we will have increased prices of these products from Serbia and BiH, the tarary will pay citizens, not politics. “Zaconally with such measures are protected by specific local products, but if we don't have many such products, then as a measure it will only increase prices and thus the effect fades or even disappears”, Merovci said.

While university professor Nagip Slander for Rtv21.tv said these measures show the political power a government takes over other states has failed to respect the political and economic sovereignty of another country. I don't wish this move to be temporary “” until an intervention in the international community and then we retire, because this rather shows a non-sysisity of our institutions (and weakly) and that this would have to bring its effects, especially political. When the fact is known that Serbia from Kosovo within the year receives hundreds of millions of euros from its exports to Kosovo, then the biggest loser in this case would be the exact place Serbia benefits.”.

The European Union's reaction, which has urged Kosovo authorities urgently to explain their decision to raise tariffs by 10 percent in imports of goods from Serbia and Bosnia and Herzegovina. EU spokeswoman Maja Kocijancic said this decision undermines regional co-operation and is not in line with the principles of the EU and Kosovo Stabilisation and Association Agreement. “These decisions are a clear violation of Kosovo's obligations under CEFTA. The EU expects Kosovo, which currently heads CEFTA to fully fulfil its obligations and revote that move”, Kocijancic said.

On the other hand, the Kosovo Producer Club supported and welcomed the Kosovo Government's decision that products imported from Serbia and Bosnia and Herzegovina be taxed by 10 per cent. This decision, according to the KKP, will protect the interests of local products and provide a relief to local producers.

Nevertheless, Merovci said our production capacities in the food industry are largely insufficient to meet needs. He said tax measures for some countries would be effective if the direction of imports from these two countries is changed to less expensive countries. “fears this will happen”, he added.

Economist Safet Merovci said that with today's decision the government is finally trying to influence economic restructuring, as he said by increasing investment in production capacities and financing of the country's exports. We're a rare country in the world that we have an Export Credit Agency. The reduction of the trade deficit is imperative”, Professor Safet Merovci told rt21.tv.tv.tv.

While the professor, Nagip Skanderim, said that even though these economic measures make a difference in our economy, because it increases the cost of imported goods, however, as he says, migration will have to be found in the protectionist measures against businesses that were hit in this case, and which measures would be applied through fiscal reliefs on imports and specific products, as well as the application of monetary measures to help buy machinery, equipment, first language, re-propossertial to ready-to-renderable products, and favourables. The last “Tek, better to prove a state political power than economics in this case, because this proves that even our country can respond to the provocations and disrespect of others, and that now to think Serbian producers that the additional taxes would affect an economic area that was almost safe and favourable so far.”, said Professor Nagy Skyperer

Meanwhile, the mayor of the Bujanoc municipality, Shaip Kamberi, has asked the Kosovo government to exclude Albanian producers from the 10 per cent taxation for Serbian goods. After the Government of the Republic of Kosovo's decision to impose safeguard clauses on products coming from Serbia, the mayor of the Bujanoc municipality, calls for the prime minister and Government of the Republic of Kosovo, exemption from these measures of producers and products that are exported to Kosovo from the Presevo Valley.”, he wrote in his official Facebook profile.

Kosovo, in addition to having the import of larger goods from Serbia, has also marked import hikes this year. The value of importing goods from Serbia from January 2018 to October 15th of this year is around 360m euros, mainly food industry and construction materials. Meanwhile, Kosovo has exported goods to this state worth no more than 23m euros.