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Kosovo Government to review fiscal polices


Prishtina, 5 July 2007 - The Kosovo Government has decided to establish a working group on reviewing the proposal of the Ministry of Trade and Industry to change the fiscal policies. The Spokeswoman of Kosovo’s Government, Ulpiana Lama, said the Group shall consist of representatives of the Ministry of Finance and Economy, Ministry of Trade and Industry and financial mechanisms.

The decisions on changing the fiscal policies, if made by the Working Group, should not be in contradiction with recommendations of the international financial bodies.

The proposal on changing fiscal policies envisages the following: the corporate income tax should be lowered from 20% to 10%, personal income tax on all income above € 80 should be 10%, whereas income lower than € 80 should be exempted from taxes. In addition, the threshold for declaring VAT should be reduced from €50,000 to €25,000.

Different stimulations for companies generating economic growth and employment will also be available.

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