IMF report, Kosovo first front in Balkans for tax revenues

After the pandemic, tax revenues rose dramatically, marking the greatest growth among Western Balkan countries”, the ATK report referring to the IMF report said.

The report notes that about a third of the VAT increase in 2020 2022 can be explained with improvements in tax management, including increased formalisation. Also reflected in the report is the strong growth of revenues from the Tax in the Future of the <x0 Corporations. As VAT and TAK growth is largely explained by increasing tax base (growing the number of tax - paying businesses). Increasing formalization has generally played an important role in the growth of total revenues. This is supported by the efforts of the Kosovo Tax Administration (ATK) in the form of increasing controls and inspections in the field.

The report also points to ATK's commitment to employment formalism, which says that according to sector-level data, the government's support to increase formal employment, including women, also leads to increased revenues from the newly-made Personal Tax ( TAP).

Increasing employment in sectors that tend to have relatively high levels of informality, such as accommodation, food service and construction sector, have expanded the tax base of TAP. Increasing female employment can also explain part of the increase in registered employees.

While female employment in Kosovo has been relatively low, it grew faster than men's employment in the past decade, resulting in an increase in women's percentage in total employment from about 30 percent in 2012 to about 40 percent in 2022.

Among other things, this report also estimates increased tax bases according to type of taxes, interilateral co-operation in preventing and fighting the informal economy, as well as continued ATK efforts to increase partnership with citizens. /Periscopi/