International pressures against tax 100% do not repel Haradinaj Government

The Kosovo government, on 21 November this year, has increased the 100 per cent customs tax on products of Serbia and Bosnia and Herzegovina.

As long as this measure was not well received by internationals who constantly demand that this tax be removed, subjects in office, opposition, businesses, citizens and economic experts have welcomed the tax imposed by the Ministry of Trade and Industry and approved by the Government.

EU Enlargement Policy Commissioner Johannes Hahn during a press conference after meeting with the leaders of institutions in Kosovo, said the customs tax is against the principles of the Agreement on Free Trade (CEFTA) and the resolution of issues should be done bilaterally.

Hahn has said that in meetings with leaders he has been focused on resolving trade-related issues for the two countries.

“We've all been surprised and in a disappointed way and this is not something that should not remain in force. I've offered to focus specifically on these trade-related issues and solve them as soon as possible. To contribute to dialogue that is important not only for the two countries, but also for the” region, Hahn has said.

After a meeting with Serbia's president, Aleksandar Vuciq, Hahn has written on Twitter that the implementation of the CEFTA and RA agreement is being hampered in terms of regional co-operation.

And business representatives, the statement by Commissioner Hahn, see it as an open threat to Kosovo businesses.

Kosovo Business Alliance Chairman Agim Sahini said that after Hahn's statements, many investors will think the situation in Kosovo is very bad.

“Commissioner Hahn yesterday made an open threat to citizens and businesses for not removing the tax [to Serbia and Bosnia and Herzegovina]. This is a huge debacle of some reports that have built either with the international factor and doing business will become more difficult because many international media have published its visit and threat, where many investors will think that Kosovo is worse than in Georgia, that in Ukraine and many other countries that Kosovo is already reporting as a very bad place for investment”, Sahini, told Telegrafi.

According to him, the country's institutions should be unique in empowering Kosovo.

Kosovo's “government after independence is the second time it is showing its power, the country's institutions should be unique against this European Union offensive and against Kosovo and leave Serbia alone. It is time to empower the citizenship of Kosovo, the actions of Kosovo, but even the citizens of the country must now understand that we are dealing with a policy against Kosovo”, he said.

Against lifting the 100 per cent tax has been Prime Minister Ramush Haradinaj, warning other actions that could be taken against Serbia.

Haradinaj has reiterated his stance that the tax on products imported from Serbia will remain until Serbia recognises Kosovo's citizenship.

This decision could last as long as Serbia recognises Kosovo and implement all other agreements. To serve taxes that we are waking up, and that this is Kosovo's decision and that Kosovo has made this decision because there has been no other solution”, Haradinaj had said at the First Convention of Kosovo Producers, Telegrafi writes.

He has encouraged Kosovo producers to establish business ties to promote local products and economic potential in the country, and according to him, selling some local products after the tax has increased by up to 20 percent.

We aim to reduce import of products or replace products from import with our products. The 100 percent tax should be seen, not as opportunities to increase prices, but to increase production and quality, but support to producers. The production of construction blocks has increased by 20 percent, the processing of toilet paper for 40 percent, we have a significant increase in fluid production, oil, water, chicken meat for 10 percent, and drug production has increased by 10 percent<1>, he said at the agribusiness fair “Our report” is being held in Pristina.

Haradinaj has added that the consumption of local products has increased since the Kosovo Government's decision to impose tax on products originating from Serbia and Bosnia and Herzegovina.

“In the production sector are 829 new companies, or 14.5 per cent more, while 377 new or 12.9 per cent more, Haradinaj said.

On the other hand, Kosovo Economic Ode Chairman Berat Rukiqi at the CEFTAva conference, which is being held in Pristina, has stressed that Kosovo has faced trade barriers imposed by neighbouring countries in particular by Serbia since 2007.

“is 2018 and we still have issues that we have raised in 2007 and no regional and European mechanisms have solved and this has pushed businesses to be very opposed to our involvement in CEFTA or even with radical requirements for exit from CEFTA. Sixty per cent of businesses from Kosovo have not benefited from CEFTA”, Rukiqi has said.