Tax does not empty stores from products originating from Serbia, Bosnia

Some citizens claim that since the tax is imposed, they have no longer been supplied with products from Serbia, but they express surprise about how nearly all products produced in Serbia that were on the market were present before the Kosovo Government's decision.

Buying is a professional cook. He says he has not noticed in stores a lack of products from Serbia or even Bosnia.

Serbia's “has products..., they have not disappeared. It is unintelligible, since either in the Kosovo market, Serbia's merchandise has been stocked for a year. This is strange, there's something suspicious here, so far there's had to be a missing”, Brian says.

Meanwhile, another citizen from Pristina, Kimete Gashi, says that in some small stores there is a shortage of Serbian products, but, according to her, these products are not lacking when it comes to large trade shops.

“I think there is a lack of certain products from Serbia on small brands, but not on large margins. However, I think these products from Serbia are not asking as much as before”, she stresses.

The Kosovo government on November 6th last year had initially imposed a 10 per cent customs duty on products imported from Serbia and Bosnia and Herzegovina. This customs tax rose 100 percent on November 21.

And on December 28th, the Government of Kosovo decided to impose 100 per cent customs duties on products imported from international frogs produced in Serbia and Bosnia and Herzegovina.

Since that period, according to Kosovo Customs data, imports from Serbia have dropped markedly. Meanwhile, the presence of goods on the Kosovo market, according to Trade and Industry Minister Andrew Shala, is evident because citizens are no longer buying these products.

On the other hand, Minister of Trade, Tourism and Telekomunication in Serbia's Government Rasim Lajiq earlier said goods from Serbia can be encountered throughout Kosovo and that they are reaching there through alternative roads, mainly through Croatia and North Macedonia.

Kosovo Customs officials in a response to Radio Free Europe have said that since the establishment of the safeguard clause, Dogan has been accommodating its resources in order to respond to eventual smuggling growth.

However, the Adriatic Stavileci, spokesperson in Kosovo Customs, says the figures speak of the same level of tentim-constrade, but the only difference, according to him, is that there is now the attempt of smuggling food goods with minimal values that has not been a tendency.

Last week, Kosovo Customs, however, has confiscated goods smuggled from Serbia, worth 25 thousand euros.

Otherwise, wheat has been among the products that have been imported in larger amounts from the state of Serbia. It has since been processed in the Kosovo market. Currently, there is no shortage of wheat and its products on the market, but that, according to the miller's Association, reserves are being spent.

Bashkim Zejnullahu, chairman of the Association of Kosovo Mullies in a proposal for Radio Free Europe, says the price of wheat products has not increased on the Kosovo market, while for providing wheat and flour from the countries of the region and Europe has increased markedly the cost, which makes it difficult to develop the event. He says Serbia's wheat is processed in northern Macedonia and in Kosovo entered as a Macedonian product.

He says putting the tax on the political side may be reasonable, but in the business way, he underscores, this tax has created a problem.

There is no supply, but there is a lot of price. I don't believe the tax will reflect on the prize, but the entire industry is expected to go bankrupt. Because we cannot afford to pay 30-40 euros of the most expensive wheat to come from other countries like Croatia, Hungary or even from the Russian market that is currently coming. We're more expensive than the producers in Macedonia and they don't allow us, they don't create price opportunities, but we're not working”, Zejnullah said.

According to official figures, during 2016, 37 million pounds [37 million kg] of flour, worth 8m euros, have reportedly been imported to Kosovo, while during this year from Serbia's state in Kosovo, 22 million pounds [22 million kg] of flour, exceeding 4m euros.

On the other hand, the construction sector, considered one of the largest sectors in Kosovo, is said to have no problem with providing needed material.

Faton Hoxha, chairman of the Association that the builders in Kosovo, says the tax has not influenced the security of the construction material, some problems have had with wood security, but this is quickly covered by Montenegro.

“So far there is no eventual concern from companies in Kosovo, regarding the lack of any” product, Hoxha said.

The European Union and the United States of America are calling on the official Pristina to suspend this tax so that the continued possibility of dialogue in Brussels, between Kosovo and Serbia.

Serbia's president, Aleksandar Vuciq, has said he will not participate in the dialogue, without taxes being removed.

But, Kosovo Prime Minister Ramush Haradinaj is insisting that the tax will be lifted only when Serbia recognises Kosovo's independence.