Kosovo's Tax Administration is urging businesses operating in northern Mitrovica to register in the Kosovo system.

Many businesses there, as well as in other Serb majority municipalities in the north, are not counted.

That means they, for years, pay no obligation to the state of Kosovo.

In fact, the Serb population in the north, since the post-war, has not obeyed the decisions of Kosovo institutions, but those of Serbia, operating in the area through parallel structures.

Even ATK's latest request, some Serbian business leaders he talked to REL in northern Mitrovica said they would ignore it.

The owner of a beauty salon, which spoke on condition of anonymity, said he heard tax inspectors accompanied by police have warned business owners that they should register, but that she has no intention of doing so at least for now.

According to her, this is another “pression” on Serbs in the north, which, as he said, comes to the wrong “”.

She did not specify more, but said that if there is no other solution, she would be interested in business registration procedures.

A grocery store owner said her income would not be enough if she had to pay taxes.

As long as it goes like this, I'll work... When the time [of the census] comes, I will count on it if it is very profitable. Right now, I don't mean... And I don't think the bar will shut down, despite pressure from all over”, this Serbian entrepreneur said.

ATK: Businesses in the North Must Record · Global Voices

Last week, Kosovo Tax Administration inspectors visited several local businesses in North Mitrovica and urged them to register in the Kosovo system. The inspectors' activities continued early this week, respectively, on September 4th.

ATK regional director Besim Halili told Radio Free Europe that most of the surveyed businesses are unregistered, but did not offer concrete figures.

He said owners have been given seven days to register their activities.

If they need an extra deadline, we can continue because it's a problem... Business registration centers while I have information there is no such thing as this. They [business representatives] must go to the Ministry of Industry, Intervention and Trade [to register]”, Halili said.

From the data of this ministry, sent REL doesn't notice any increase in business registration.

During the entire August, only three businesses -- North Mitrovica and one from Leposaviqi -- have been registered by Serb majority municipalities in the north. In the period 1-6, however, no registered business is found.

The application for business registration can be made at any municipal centre of the Agency for Business Recording, operating within the framework of the Ministry of Industry, Enterprise and Trade. Application can also be made online.

Last week, Kosovo Tax Administration inspectors visited several local businesses in North Mitrovica and urged them to register in the Kosovo system. The inspectors' activities continued early this week, respectively, on September 4th.

ATK regional director Besim Halili told Radio Free Europe that most of the surveyed businesses are unregistered, but did not offer concrete figures.

He said owners have been given seven days to register their activities.

If they need an extra deadline, we can continue because it's a problem... Business registration centers while I have information there is no such thing as this. They [business representatives] must go to the Ministry of Industry, Intervention and Trade [to register]”, Halili said.

From the data of this ministry, sent REL doesn't notice any increase in business registration.

During the entire August, only three businesses -- North Mitrovica and one from Leposaviqi -- have been registered by Serb majority municipalities in the north. In the period 1-6, however, no registered business is found.

The application for business registration can be made at any municipal centre of the Agency for Business Recording, operating within the framework of the Ministry of Industry, Enterprise and Trade. Application can also be made online.

What if they don't sign up?

ATK plans to extend the inspection to other Serb majority municipalities in northern Kosovo: Zvecan, Zubin Potok and Leposaviq.

Halili said that if businesses do not register, fines will follow, or they will be recorded by ATK itself.

“ATK has the right to register businesses, unless they are registered on their own. If the taxpayer refuses to register, the administration registers it on tax issues itself, releases fiscal numbers to business regularly and can count on tax obligations. On the contrary, [the unregistered business] could be fined the initial 500 euro fine”, Halili explained.

Registered but Without Fiscal Bases

According to data from the Ministry of Industry, Undertaking and Trade, 3,796 businesses are registered in the four Serb majority municipalities in the north, exercising various activities.

Leposaviqi is the municipality with the largest number of registered businesses, 1.472 respectively; succeeds Zvecan with 854, North Mitrovica with 807 and Zubin Potoku with 663.

But, while registered, according to Halil, they are not equipped with fiscal electronics, which register inflows, therefore taxes that are mandatory to pay in the Kosovo Tax Administration.

Halili said their equipment with fiscal crates will be considered in any case later.

Pressure on Serbian Inspectors

Kosovo's Tax Administration has 13 inspectors for the Mitrovica region, of which three are of the Serb community, a Bosniak and others Albanians.

Halili said that during recent inspections in northern Mitrovica, Serb national inspectors have also been present, to whom, as he said, there has been pressure from Serbian business owners.

He said that during the last two days, inspection activities have been suspended, and that one reason for that has been exactly “press and intimidation of Serbian inspectors”.

On September 5th, I have asked ATK to come to the aid of two Serbian national inspectors from the municipality of Gracanica. That same day, I had information that they would come, but then I was informed they didn't come, because they entered a medical vacation”, Halili said.

REL asked the ATK why the additional inspectors were not sent, but received no answers.

I understand they have pressure, but as long as they're inspectors, they have to act... If we submit to pressure, then why we are here as institution”, Halili said.

O EC: Unregistered businesses damage formal businesses

The chairman of the Kosovo Economic Ode, Lulzim Rafuna, said unregistered businesses in the north have damaged businesses operating legally.

He said the mechanism he directs supports any initiative to formalise businesses, resulting in eliminating unfair competition.

The “ [unregistered businesses] harm businesses that issue fiscal coupons. In some form, these [unregistered] businesses may have smuggled goods, at cheaper prices, and undoubtedly harm businesses doing fair, confirming the legal provisions of our state”, Rafuna told Radio Free Europe.

Rafuna recalled that businesses in the north, apart from not paying tax obligations, do not pay either for electricity and spent water.

Residents in this area -- mostly Serbs since the war in 1999 -- pay neither electricity nor water.

The refusal has resulted from civic disobedience, but also the impact of various structures there, operating under Serbia's correction.

The current debt is estimated to have exceeded 300m euros, while for water of over 15m euros.

The issue of non-paying these services has been raised several times, both within Kosovo's internal policy and in dialogue on normalising Kosovo-Serbia relations, but so far there is no applicable solution. /rel