The 100% tax effect increases local product consumption and the number of employees

The Kosovo Business Alliance has done a research on the impact of a 100 per cent tax on the Kosovo economy from November 21st to December 5th 2018. In this research, the GDP is said to have surveyed 300 selected companies in Kosovo's food, trade, service and construction industry with 250 Kosovo consumers.

Lumniye Aydin, general manager of GDP, announced about Radio Free Europe that on the basis of research it turns out to Kosovo businesses, 100 per cent measure, has provided positive effects for local production.

Local production, Aydini adds, has marked growth by 25 percent over this period of time.

“Businesses show that it has grown Selling Products They are during this period since the 100 percent tax was issued in the 40 percent construction industry, in that food industry 25 percent, transport 20 percent, trade, and services 5 percent and another 10 percent, because Kosovo producers have increased production capacity has also increased”, says Aydin.

The Pestova company, which deals with the processing and production of potatoes, is one of many local companies, which say production growth has been marked.

The owner of this company, Bedri Kosumi, tells Radio Free Europe that production and the number of employees have significantly increased.

After the 100 percent tax, which has been necessary, has become a huge increase in consumption of local products. I'm talking about our case, that at the company, we've extended work hours, we're working on three shifts and so on the weekend. Production growth has also increased the number of employees in the company”, Kosumi says.

Trade continues to remain Kosovo's favourite economic activity, bypassing production. Producers in Kosovo have repeatedly called on the country's institutions to create favourable fiscal policies to strengthen the production sector.

For increased local production capacities, Aydin says to have recommended production companies to increase quality Products as well as have recommended to the Government of Kosovo to subsidise production businesses so that the latter can be empowered.

I request from the Government of Kosovo to remove taxes on wheat, corn, flour, oil, detergent and other essential products affecting the consumer basket. Support local business promotion more. In addition, to prevent smuggling, we seek from institutions that point to 1st and 31st and the border belt with Serbia to increase the number of customs and police members”, Aydin says.

Trade and Industry Minister Andrew Shala, after setting a 100 per cent tax on products from Serbia and Bosnia and Herzegovina, had asked producers to focus on raising quality.

Kosovo, according to Statistics Agency data, continues to face high trade deficit.

Due to Kosovo's poor production industry, the export of products “Made in Kosova” in various countries in Europe and the world, totals over 300m euros annually, while import of foreign products in the country totals about 3 billion euros annually.