Information seriously hurts Kosovo

Although the Kosovo tax system is estimated to be simple, the big continues to be informality and the informal economy in Kosovo.

Kosovo Tax Administration Deputy Director Hamdi Hoxha tells Radio Kosovo that even though informality in the country is above 31 %, last year has been marked decline and ATK managed to collect more taxes.

In 2017, with 2015 data, there's been a decline in informality and there's 31.7%. We closed it in 2017 with tax revenues of 415 million. For 115 million we have increased tax revenues, which also means reducing tax informality or tax evasion”, Hoxha said.

For Arrian Zeka, from the American Economic Oda, informality in Kosovo is high, and this, according to him, is hurting regular businesses. He showed who suffers most from informality.

“The consequences of informality hit in the first place those who are regular taxpayers. So companies that carry out their duties in order to address the state”, he said.

Zeka says the high level of informality is also adversely affecting the appeal of international investors.

“Informity as such is, of course, an obstacle to attracting foreign investment, but also bringing global insides to Kosovo, since they do not want to come and operate in an environment where there is such a high degree of informality”, Zeka said.

ago, on the theme table, “Fighting informality, the steps so far and the road ahead of”, organised by the American Economic Oda, was said that over 50 %s of businesses in Kosovo are not taxed, and this is affecting increased informality and market disorder from non-combat competition.

Meanwhile, in the Kosovo Tax Administration, say taxing businesses is the ongoing process, and, according to them, is affecting the fight of informality and non-local competition.