Economists call for VAT removal from basic products

Prices of certain food products in the country continue to rise constantly.

According to economic connoisseurs, citizens could buy a few cents cheaper if the tax on value added to basic food products was lifted.

Jakup Bellaqa, the expert on economic issues, estimates that VAT removal in basic food products would facilitate the lives of citizens.

The VAT century for basic products is very high, taking into account the opening parameters of Kosovo's economy or inputs. It would be useful and facilitate the consumer basket or the lives of citizens and the family economy, in the face of high inflation and price hikes”, he has said of the time.

Removing the tax on added value, according to economics connoisseur Fidan Qerimi, would also affect declaring business revenues in Kosovo's Tax Administration.

“VSH is reduced in revenues for these products, but it would also affect reducing the informal economy, on the other hand, increase in business statements, for those who avoid such claims, and for growth of the economy”, the government has declared.

According to economic connoisseurs, if increased value tax does not depart, citizens can pay even more dearly for products they buy if Kosovo leaves CEFTA.

In 2015, the Government of Kosovo was led by former Prime Minister Isa Mustafa had made a decision to remove the VAT for basic food products.