2 minutes agoMP Hoti counts the mistakes of Kurti Government that have done on property tax
Periskopi(2 years ago)
(2 years ago)MP Avdullah Hoti has counted some of the failings of Government Kurti in terms of property tax. According to him, to cope with inflation, all normal governments generally lowered tax loads for citizens, but that Kurti Government did the opposite. He says increasing property tax from the current government was [...]
MP Avdullah Hoti has counted some of the failings of Government Kurti in terms of property tax.
According to him, to cope with inflation, all normal governments generally lowered tax loads for citizens, but that Kurti Government did the opposite.
He says increasing property taxes by the current government was an unprecedented move. /Periscopi
Complete Hoti Post:
1. INFLACON'S CULM, RER CENTURY BYRECTS TATIMAL WRITER IN PROIN AND IN 2023 M BLECH 33% MORE FROM TAT ICE WRITER IN PRONEA
Early in 2023, when real incomes were markedly reduced by 2022 inflation, the Kurti Government increased the tax burden on property. As a result, in 2023 The government has collected 33% more revenues from property tax from citizens and businesses compared to 2022. That was an unprecedented act. To cope with inflation, all normal governments generally lowered tax loads for citizens.
2. T ATTAMING TOKAV EWAY E CULTIVED BUICE
This year, Government begins collecting property taxes on cultivated agricultural lands. This comes from changing the property tax law that took place last year.
In the preliminary law, Article 10, points 4, specified that “TAT ICE AT SUCCESS SUFFECTIONS MBI CULTIVU THREE ARA BUCHAL OF PARCELAVE”. This article was intended to encourage agricultural landowners to cultivate them or to give in to exploitation.
With the new law, Article 3, verse 2, covers Article 4 of the old law. Now, landowners are obliged to pay taxes regardless of whether they work the land or not.
3. Z NORMAL BATATION TATURE PROGRESSS WRITER IN PRONEA
With Article 6 of the new law, the government established progressive tax rates on property depending on the value of property. The move shows the lack of institutional experience and fiscal and economic knowledge related to tax policies. The fact that the property tax rate is placed on the value of property, which is determined by the open market, then the very charge of property tax is progressive by the nature of its accounting, the higher the value of the property market, the higher the tax burden on property.
International experiences do not recommend progressive property tax rates. International organisations operating in Kosovo have estimated that this change in property tax in Kosovo has been made without any preliminary analysis and consultation with relevan actors, such as municipalities, businesses, NGOs and citizens' groups in general.
Moreover, changes made to the new law have reduced legal instruments for property tax collections, which debts for the period 2018-2022 have been estimated at a level of 56% total tax burden.
The other problem that strains property tax management is the lack of preparation for implementing the progressive property tax rate. Project PROTAX2, which supports Government on property tax issues, has not adapted to the new law. This is because the funds for this project are blocked by EU measures from July 1st 2023.
The progressive property tax rate will be a huge burden, especially for businesses that have valuable properties.
