The budget is reduced to at least 200 million less, tax revenues reduced

One of the businesses that after making the government's decision has failed to pay a portion of the tax, is the company “pesova” from Vushtrria.

The owner of this company, Bedri Kosumi for Radio Free Europe, says that in the first month, he has taken advantage of the government's decisions, but is already regular in completing obligations to the administration, even though he says, the company “Pesova” has had financial difficulties during restrictive measures.

Kosumi even shows that to cope with the financial situation and the creation of new production lines, he has taken credit to one of the commercial banks operating in Kosovo.

We've used those claims at the beginning of the pandemic and for paying taxes for a month, then not. We've had problems a lot like all businesses in Kosovo and beyond, but then we've been in better condition and paid off regularly. The loan has also been taken for production line and the preservation of liquidity, the reduction of money ready to cover the coming years”, Kosumi says.

Ilir Murtazaj, director of the Kosovo Tax Administration, says that in the first quarter of this year, there has been a drop in revenues from taxes.

From January until May, revenues in the administration have been more than 186m euros or 22m euros less, compared to the same period last year.

The decisions of the Ministry of Finance and Transfers are also at the same time, as the period for paying tax and pension contributions has been extended until May 15th 2020, as well as the payment of quarterly installments has lasted until June 30th 2020”, he said.

Monthly Doing Business

Murtezaj's decline in incomes further linked the decline in business circulation. According to ATK's April data, about 44 per cent have been declining circulation businesses compared to the same period in 2019.

Bedri Kosumi of the company “Pesova” also indicates that during this period there has been a decline in circulation.

We have had a 12 percent drop in March, in April more than 20 percent, and in May 8 percent drop”, Kosumi points out.

ATK fails to meet planned annual projections

The Government of Kosovo's decisions on preventing the pandemic caused by Coronavirus will also affect planned annual projections, Murtezaj says.

According to the projections presented in the budget adopted in March of this year, it is envisioned for ATK to collect 557m euros. But according to Murtezaj this figure is difficult to bear.

In the Tax Administration, although it is early to predict the end of the year, according to the ATK's internal projections, we intend to reach last year's tax revenues level. That means even though we may have a decline in the economy, at least we by reducing tax evasion to achieve last year's realisation level of”, Murtezaj said.

Last year the Kosovo Tax Administration, according to Murtesaj, has managed to raise 504m euros.