Tax Changes Fill State Ark

The Value Added Tax rate prior to these changes in 2015 has been 16 percent for all products.

According to Kosovo Statistics Agency data, government revenues from the value added tax from the introduction of the fiscal package to the present have marked growth.

In 2015, revenues from the State Value Tax were 584.3m euros, in 2016 over 650m euros, and in 2017 there were over 711.5m euros.

Meanwhile, in an assessment of this fiscal package made by the Kosovo Tax Administration, it is said that in the revenues realised by the VAT for nearly all activities following the introduction of this package, there has been increased revenues.

Loss of incomes have been involved in tax changes from 16 percent to 8 percent.

“Change of VAT revenues for the January-August 2016 period by January-August 2015 on these activities is 14m euros less than the period before the change of tax rates”, the ATK report says.

The fiscal package, which began to be implemented in 2015, has produced its effect, resulting in increased revenues as a result of these changed rates. For January, August 2016 compared to the same period in 2015, there has been an increase in revenues”, Valentina Bytyci-Sefa, spokesperson at the Kosovo Tax Administration, said.

The 2015 fiscal package had included changes to the Law for T V The US Law on Personal Taxation, as well as the Law on corporate Taxation.

Economics Professor Naim Gashi has told Radio Free Europe that the effects of this fiscal package have resulted in positive for the country's economy.

The fiscal package approved by the Government in 2015 has yielded its effects on the economy because over three years we have had an economic growth of over 4 percent that has been highest in the region. At the same time, although the new fiscal package has had emissions of up to 40m euros for businesses, however, revenues in the state ark have not been reduced”, Gashi has said.

The Kosovo government at the end of 2017 approved new fiscal measures free from customs tax, the first item used for production, the power lines of manufacturing machines, as well as information technology and others.

The effects of these fiscal measures, according to Gashi, can be observed after several years.

The effects of the fiscal package will be seen after 1 or two years, as reforms in the economy are not noticed during the fiscal year. What's important is that Customs and the Tax Administration have performed very well and there will be no financial instability, even though the new fiscal package” has been adopted, Gashi explained.

The Kosovo Tax Administration and Customs are the main contributors to the state budget, which this year amounts to 1.8 billion euros.