24 minutes agoGovernment in the fog, economists come up with inflation-related options
Periskopi(4 years ago)
(4 years ago)The rise in product prices has become the topic of discussion now and in Kosovo too. Pandemia, followed by the conflict in Ukraine, are the main indicators that have put the world economy ahead of such an inevitable trend even Kosovo. Economists give some ideas about how to handle the situation. [...]
Economists give some ideas about how to handle the situation.
Naim Huruglica, former director of Kosovo Customs, cites that in addition to lowering the excise and VAT, there should be direct support for certain products.
“may be a combination of lowering VAT rate for a given time because if you know the excise is not determined based on the increased import price, but on the amount imported d.m. It is defined in quantity not in price, while T OV grows because The VSH is worth”.
In the concrete case whether Government manages to bring in more revenues, as a result of the rise in the global market price, it would be logical to find the method for these coming in or turning it back or reducing T VSH for price rates that have increased. So. could become a combination of these policies, including subvention of certain industries”, Huruglica said about RTV Dukagini.
And another option, which according to Andrew Feta, a political economy connoisseur, would have a direct effect on the market economy, is the temporary removal of excises in oil, the cause of its chain effect.
It is understandable and acceptable that this in itself carries the cost of lost incomes from excise to oil, yet by doubling excises in tobacco and alcoholic beverages over 2/3 of this cost, it could be recovered in view of the loss of consumption in these last two”.
I think that if this change in excise were forwarded to the ceiling price, the measure which the Government of Kosovo currently applied would remove any dilemmas about efficiency and enable Kosovo's business and citizens to pay the price of oil for 35 cents cheaper, and the total cost of this would be about 50 million less incacision from the excise in a period of 6”, Feta has said.
Feta, questioned about the government's response to inflation, has stressed that the up-to-date measures have not been effective.
According to data from the Kosovo Statistics Agency, the annual inflation rate measured during September this year, compared to that of 2021, was 12.7 percent.
Among the products that have a high price rise, the ASS report mentions solid fuels, firewood as well as diapers, which have reached up to 60% more expensive.
