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“10 percent tax increase is not enough” (Telegrafi)

By   /  07/11/2018  /  Comments Off on “10 percent tax increase is not enough” (Telegrafi)

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Economy experts and local producers in Kosovo are arguing that the 10 percent tax increase on products coming from Serbia and Bosnia and Herzegovina is not enough and that it will have minimal effects in protecting local products, the news website reports. Former Trade and Industry Minister, Bajram Hasani, told the news website that the government should have decided on a 30 percent tax increase. “I doubt that the government will withstand pressure from the European Union on products coming from Serbia and Bosnia and Herzegovina. The 10 percent increase is not enough. Let me remind you that we had introduced a 30 percent increase on fruits and vegetables. If they really want to protect local products, the tax should have been increased by at least 30 percent. I am basing this on proper analysis that we conducted at the time when we decided to introduce the 30 percent increase. This is the ceiling we need to introduce in order to protect local producers from the wild import from Serbia and Bosnia and Herzegovina,” he said. Mergim Prishtina, owner of Trepharm, a pharmaceutical manufacturer in Kosovo, told the news website that it would be better for the Kosovo government to introduce reciprocity measures than taxes. “It would be better to have reciprocity with these countries, because they don’t have taxes on our products, but procedural barriers … I think the 10 percent increase is not enough,” Prishtina said. He welcomed the Kosovo government’s decision and added that manufacturers from Kosovo have difficulties accessing the markets in Serbia and Bosnia. “This decision is a very good starting point. Our company has been trying to enter the Serbian market for five years, but we could not. Currently we are trying to enter the market in Bosnia, but it is proving impossible too,” he said. Bashkim Osmani, a manufacturer of non-alcoholic drinks, said the government should have introduced protective measures even earlier, especially towards Serbia. “The tax increase will have an impact. In fact, we should’ve introduced such measures towards Serbia even earlier, because we as local manufacturers were not able to sell our products in Serbia. Ever since the declaration of Kosovo’s independence, they continuously gave us problems when we tried to export to Serbia,” he said. According to Kosovo Customs officials, Serbia annually exports products worth €400 million to Kosovo, and Bosnia and Herzegovina exports goods at €80 million.

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