Now 20 years, citizens of northern municipalities pay no cent to Kosovo state tax

About 12m euros per year are calculated the joint energy bill spent in these municipalities. From 1999 to 2017, these vehicles have been paid by consumers from other parts of Kosovo.

Kosovo citizens' bills were for 3.5 per cent more expensive, which is considered to be paid to citizens of the northern part of Kosovo.

But after much complaint, the Court of Appeals, late 2017, had decided to suspend this practice because it was illegal.

The current is spent, but the bills don't pay.

Even during the past year, citizens of this section have not paid their energy bills. The annual report of the Energy Regulatory Office in 2019 does not calculate losses by financial means, but it is said that the unauthorized “consum of energy constitutes 13.04 percent of the distribution demand, out of which the ill-fated energy in Kosovo's four northern municipalities constitutes 5.53 percent or 294 Gigawator (GWh)”

Consumers of this section are supplied with energy produced by the Kosovo Energy Corporation (KEK) thermal power plants, while bills should pay the Power Supply Distribution Division (KEDS), as the latter privatised the power distribution network.

People cross the bridge over the Iber River that divided the northern and southern part of the town of Mitrovica.

The default of bills occurred because energy sector officials were unable to access the north of Kosovo and failed to read accounts, send bills to citizens, nor raise revenues for energy spent there.

Four municipalities in northern Kosovo are inhabited by Serb majority, which over the years have operated outside Kosovo's constitutional judicial system.

Within the Kosovo-Serbia dialogue, mediated by the European Union, the Energy Agreement had been signed since 2013, but as such has not been implemented by Serbia.

Based on the Energy Agreement reached between Kosovo and Serbia in Brussels, the condition for Serbia was the registration of a new Serbian company, according to Kosovo's legal framework, which will power consumers in the four Serb majority northern municipalities.

The competent Kosovo authorities have met all the criteria and conditions for registering this company, but that Serbia is not making such a move.

In the north they don't even pay for the spent water.

In addition to 12m euros a year for energy bills, consumers of these municipalities owe another 15m euros for water bills spent since 1999.

Consumers of these municipalities are supplied with drinking water from the Regional Water Company “Mitrovica”. This company is under the umbrella of Water Services Regulatory Authority (ARRU).

Officials of this authority have earlier told Radio Free Europe that in the northern part, over 6 million cubic metres of water were sent in 2019.
Kosovo north does not pay spent water bills
The price for one cubic metre in that section is even 0.17 euros, while for consumers in the southern part, it is about twice as high.

The default of bills has not rarely made company activity difficult. For this reason, the Government of Kosovo makes subsidies to various financial sums for almost every year in order to enable company operation. The government's subvention for the water pipeline company “Mitrovica” has occurred with taxpayers' taxes.

Kosovo north without fiscal coupons

In that part, businesses hold their own activity in most cases unregistered in Kosovo's central institutions and without paying tax obligations.

In the four Serb-populated municipalities in northern Kosovo, in the Kosovo Tax Administration (ATK), only 981 businesses with a total of 1,316 active units are registered. From this number, taxes in ATK pay 255 businesses.

From January to September this year, the value of taxes received from these businesses without pension contributions is 663 thousand euros, ATK officials have said.

Businesses in that part also operate without Fiscal Electronic Equipment, which in all of Kosovo's territory began in 2009. Based on this equipment, fiscal coupon is issued after each purchase.

Failure to issue fiscal coupon and non-transmitting data to the Kosovo Tax Administration are punishable with law in force.

Kosovo Tax Administration officials have said this institution's approach to four Serb-run municipalities is not very comfortable if compared to other Kosovo regions