What the Economic Regeneration Law envisions today, which was voted in the Assembly.

What the Economic Regeneration Law envisions today, which was voted in the Assembly.

The Economic Recovery Bill has received first reading approval by Kosovo Parliament deputies, the seventh time it was put to the polls. The bill has 13 articles, and it is in length until the end of 2021. Except the very point of withdrawing from the Trust, the bill envisions changes in VAT, tax [...]

The bill has 13 articles, and it is in length until the end of 2021. Except for the highly talked point of withdrawing from the Trust, the bill envisions changes in VAT, and corporate income taxes.

The main point of this bill is the amendment to the Kosovar Bank's foundation of the Creature Guarantee, aimed at creating FKGK competencies to crack new schemes and products on the market, to increase the covering percentage of up to 80 percent of credit guarantees (actually covering up to 50 percent), to issue credit guarantees for business development for registered farmers in the farmers' register well maintained by the ministry of farmers responsible for agriculture and equipment of the Farm Identification, even when the farmer does not register with respective businesses in the ABR, and in case Kosovo government covers financial services.

Among the most controversial issues has been the creation of the opportunity for citizens to attract 10 percent of their pension savings. According to the government, around 200m euros would be introduced into the market with this mechanism.

Changes have also been seen in the Law on Added Value Tax. Bill provides for reducing TV rate The US out of 18 percent to eight, for supply of hotels, restaurants, and food services, as well as release from the VAT rate insurance transactions and farm resiliency, agricultural insurance officers for agricultural cultures.

Also, with this bill, the means of the Kosovo Privatisation Agency are required to be re-destined for required economic categories, in addition to the wage and wages category. So, the limit will be lifted so that means accepted by privatisation can only be defined in infrastructure projects.

With amendments to the Law for Taxation in the Orders of Corporations and the Law on Tax Administration, it is intended to enable the extension of the payment deadlines of business taxes up to two years, according to the criteria that will be set, as well as the release of all businesses from the tax burden of interest, provided they are paid by the end of this year.

The bill passed in principle Monday with 64 votes in favour, at the seventh attempt. Opposition parties, the Vetevendosje Movement and the Democratic Party of Kosovo have come against it. Both have criticised the government for points for the Trust, while considering the draft law has to do with recovery.

To bring this law into force, it must also pass through the second reading. After the second reading, it must be decreed by the president and then published in the Official Journal.

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