Business Hope in the Bill of Economic Recovery

His company, due to restrictive measures to prevent pandemics, has reduced production capacity to 20 percent but has not fired any workers.

With the eventual benefits of the draft economic recovery bill, Osmani says he will take care of the workers' conditions and salaries. The number of regular workers at the company is 76, while another 70 work during the summer season.

For me, workers have the lead, not companies. I have a particular priority or care for the workers, I try to create favors, improvements in order to motivate them to work. So the adoption of the bill will help me in this respect”, Osman says of Radio Free Europe.

The draft economic recovery law has managed to be voted in the Kosovo Assembly on Friday, following the proposal of several amendments by the Democratic Party of Kosovo as a condition to vote on the bill, with which the votes needed for approval have been reached.

Kosovo Prime Minister Avdullah Hoti has said that around 600m euros amount to the financial value of this bill, with which many will be supporting businesses and citizens.

What are the benefits?

One of the new proposals under the bill is the establishment of a 200m-euro grant for direct financial assistance to businesses that have difficulty operating as a result of the impact of the pandemic caused by COVID-19. These tools are within the budget for next year.

These tools will be distributed to all businesses according to criteria and conditions set by a special commission, which will be founded exclusively on the issue by the Government of Kosovo.

Under the bill, all workers who have lost their jobs due to the impact of pandemic will be paid by the Government of Kosovo by 300 euros for the October-December 2020 period.

Even the taxpayers can attract 10 per cent of the pension savings to the Kosovo Pension Savings Fund.

Under the bill, up to 10,000 euros, in the event of attracting 10 per cent from the contributor, the Kosovo government will compensate for it within the next five years.

The bill has seen the first item produced by business activities in Kosovo, regardless of whether it is exported abroad, free from the State Value Tax (TVSH).

In addition, in this bill, it is estimated that Kosovo's Creditor Fund preservative (FKGK) will be authorised to issue credit guarantees with percentages of covering between 50 and 80 percent.

Also, with the aim of economic recovery, the Finance Ministry could extend the tax payment deadline by up to two years from the date of the law's entry into force.

For businesses who fail to pay the tax declaration, no punishment is pronounced, provided the payment is made in the first quarter of 2021.

Rukiqi: These tools facilitate business finances

Osmani says government financial assistance for businesses still returns to the government.

Whatever assistance for businesses is welcome because they indirectly return to the government because taxes are paid, other obligations are paid. But it should be well managed and professionally”, Osmani says.

Even the head of the Kosovo Economic Ode, Berat Rukiqi, in a conversation for Radio Free Europe, says the adoption of the Economic Recovery Bill brings benefits to businesses and facilitates their financial situation, adding that the demands of the business community have been introduced in this bill.

“Amendments have enriched the law and are very important for financing businesses. Both the Democratic Party of Kosovo and the deputies of the position that are in the Commission for the budget and finance in the Kosovo Assembly, but also during consultations with the government, more or less our demands have been submitted to the bill”, Rukiqi said.

Gastronomy representatives protesting in front of the Kosovo Government building. Picture from the archive.

Billion Loss, Millions of Aid

The adoption of this bill has been eagerly expected by the private sector, as many businesses already in a long time are in serious financial trouble, said a Kosovo Producer Club media communique.

Even the Kosovo Business Alliance, following the adoption of the bill, has said that “this is the greatest support to raise the welfare of all Kosovo citizens”.

The business community wants as soon as the implementation of the bill starts, not wasting time, as they say it is costing the country's businesses a lot.

When can the Bill on Economic Recovery Come into force?

According to the Constitution of the Republic of Kosovo, the bill adopted by the assembly is signed by the Kosovo Parliament Speaker and announced by the president of the Republic of Kosovo eight days after it received the law. If the president during this period makes no decision on his announcement or return, the law is considered declared without the president's signing and is published in the Official Journal.

The law goes into effect 15 days after publishing in the Official Journal of the Republic of Kosovo, unless otherwise is determined in the law itself.