The cost of cultivation: Kosovo farmers feel tax burden

For years, it has grown over 150 hectares of land with various agricultural products in the municipality of Lipjan ʹ central Kosovo.

But starting this year, there are additional costs - paying taxes for agricultural land.

This tax has started to apply on the basis of the Law for Tax in the real estate, which has been changed and completed by the Assembly of Kosovo in August 2023.

Kosovo's Ministry of Finance, Labour and Transfers ensure that some farmers will receive relief, but from organisations supporting farmers, say the tax will hurt and deputise them to work the lands.

Asked by the REL how the payment process is going. The deadline for which this ministry ends on September 30th did not respond.

By law, those who do not pay their taxes are charged with a fine of 10% of the value of unpaid taxes.

What's the tax on agricultural land?

Tax for agricultural lands is determined by the multiplying of property value, respectively, by the tax rate.

In response to the Ministry of Finance, Labour and Transfers given Radio Free Europe, it is said that <x0m of taxes for 2017 vary in municipalities from 0.10% to 0.15% depending on the area, land category and market value”.

The egg, over 140 hectares of land it exploits, is rented and paid between 80 and 300 euros per hectare, depending on the value of property.

Speaking to Radio Free Europe, he shows landowners have handed him tax bills.

I paid 70 euros for a hectare from a bill. Other bills have been of lower value”, Vehapi says.

Tax Demote Farmers

Bashkim Zejnullahu, leader of the Kosovo Olive Association, says that the area of arable land in Kosovo is also insufficient, according to him, would push the stock to give up landwork.

From the peak of inflation in 2022 onward, farmers have faced ongoing challenges that have started with the costing of oil and other products for production and have continued with the growing shortage of workers.

Climate conditions that have reduced crops have also often played a role in their activity.

The Kosovo government, in 2022, shares subsidies for farmers, but they still fail to meet the needs of Kosovo citizens, especially for wheat.

Zejnullah expects, this year, to have even fewer wheat products and the prices of this product to be higher.

He is not anti-tax, but says that “was not supposed to load the farmer who tills the land, but he who doesn't work the”.

Kosovo Statistics Agency data (ASK) indicates that the country has over 512 thousand hectares of land suitable for agriculture, but for various purposes over 420 thousand hectares are exploited.

According to the AKS, about 189,000 hectares are used for growing agricultural cultures, over 217 thousand hectares enter the category of meadows and pastures, while other areas are plantations for trees, vegetables and gardens.

Kosovo has been facing a high trade deficit for years, which means it imports more than exports, including agricultural products.

The country also fails to meet the population's needs for wheat and imports from the European Union's neighbours or countries.

Local wheat production, over the years, is about 300 thousand tons, while over 410 thousand tons are needed.

Exactly a year ago, Radio Free Europe reported a reduction in landfills worked in Rahovec municipality where, according to official data, nearly 65 percent of the population provide the existence of agricultural activities.

Africa Limani, budget director and finance in the Rahoveci municipality, confirms to Radio Free Europe that agricultural land tax has begun to be paid, but “not mass”.

Agriculture Professor at the University of Pristina, Imer Rusinovac, says the tax on agricultural land has had to be postponed until there is a stability in the sector.

“ ... because this later affects mind-blown import, as farmers face strong competition, unless they support their respective dictatorship”, he tells Radio Free Europe.

The Kosovo Agricultural Union Federation confirms it has already begun to accept some complaints from farmers.

This is not in order”, says the leader of this association, Tahir Tahiri, adding that, soon, the union leadership meeting and farm complaints will be addressed to the responsible authorities.

Presenting it as a kind of relief, the Ministry of Finance, Labour and Transfers says agricultural lands worth up to 50,000 euros will not be subject to property tax.

“Fermer decides for himself which agricultural unit, worth up to 50,000 euros, wants to free it from the tax. The release requirement is made in the respective municipality, where the parcel” is located, the ministry explains.

Vehapi, who cultivates mostly wheat, says it is insufficient, since, as it were, every hectare of land that works in its municipality is estimated at over 50,000 euros.

While the harvesting campaign is expected to begin in less than two months, Vehapi says it is assuming that, next year, he will continue to plant the same surface of the earth, or reduce it.