Economists warn price hikes after tax hikes

From January 2025, commercial property tax is expected to increase from 100% to 200%. And this rise will have negative consequences for businesses in Kosovo. Even prices are expected to rise due to the new tax law passed last year.

By January 2025, commercial property owners will pay more state tax for their real estate.

The rise is even expected to range from 100% to 200%.

This is how it comes with the new property tax law passed last year.

It is very true that with the current law on real estate tax, commercial property next year will be taxed by as much as 100% and as 200%. We as an association have done an analysis with our internal expert and it turns out that businesses in our country will accept very expensive bills in relation to bills that have been accepted this year”, says Sahan Ibrahim from the Kosovo Communist Association.

This increase, according to economics professor, the Union Mustafa will also affect price hikes.

The government's decision, Kurti, clearly has a tendency to increase taxes especially in the private business sector, but it is a progressive tax. Even on the basis of the scale or market value, businesses will be taxed, they will pay high taxes or those who have second property from what can range from 100% to 200% of the increase in taxes from current taxes. Businesses I don't think will be closed due to an increase in taxes, but the first steps businesses will take is to raise the price from which the country's citizens will follow, and the last train, we have the high price rate raised”, Mustafa says.

Larger consequences according to the Economic Ode will carry businesses.

So the chairman of this Ode, Lulzim Rafuna, expects a solution to be made immediately after the elections.

The issue of property tax movement has not been a good time, especially at a time when business is being challenged with many other challenges. This kind of tax, especially on small and medium estates, will begin on January 1st. The only solution is that after elections the government will become a complement of this law to change this provision”, Rafuna said.

With the property tax law, property assessment has made it the Ministry of Finance, but the tax rate will be imposed by municipal municipalities.