Tax rate change expected, Kurti Government aims to reduce the salaries of all citizens

The option in line with the Government's programme envisions growth in percentage rates compared to current ones but also rising pay thresholds that are not affected by tax.

If someone with a 700-euro gross salary currently pays 70 euros in taxes in pay, if this initiative of Kurti Government is approved then it will pay 105 euros in taxes in pay.

That's how far it's got 630 net. With this change, however, it will receive only 595 euros of wages.

These are the two options proposed by the Kosovo government in the concept of the Tax Policy Review Document:

Option 1:

Taxable revenues by the value of 150 euros per month ($1.00 a year), to be taxed at the rate of 0%;

Taxable revenues from 150 euros per month ($1.00 a year) to 250 euros per month (3000 m per year) are taxed at the rate of 4% of the amount of over 150 euros (1800 m);

The taxable revenue from 250 euros per month to $300 a year) to 450 euros per month (5400 m per year) is taxed at a 10% rate of over 250 euros ($300,000).

Taxable revenues from 450 euros a month (U.S.) to 650 euros per month (7800 m per year) are taxed at a 12% rate of over 450 euros (U.S.);

Taxable revenues above 650 euros a month (7800m a year) are taxed at 15% of the amount of over 650 euros (700,000).

Option 2:

Backing to the Government's programme and reforms included in the programme, this option takes on the basis of raising the minimum wage threshold to 250 euros.

Initially, this option includes these tax rates:

Taxable revenues by the value of 250 euros per month ($300 a year) are taxed at the rate of 0%;

The taxable revenue from 250 euros per month to $300 a year) to 450 euros per month (5400m a year) is taxed at a 10% rate of over 250 euros per month;

The taxable revenue from 450 euros per month (U.S.) to 650 euros per month (7800 m per year) is taxed at a 12% rate of over 450 euros per month;

Taxable revenues above 650 euros per month (7800m a year) are taxed at the rate of 15% of over 650 euros per month;

“In terms of revenues, the second option is positive. This policy would result in increased revenues of about 3.2%, addressing the lack of progressiveness, and more equal contribution, based on contributing capacity”, the document says.