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The Government of the Republic of Serbia

In the service of citizens

Bill on customs tariff protects domestic production

Belgrade, 1 June 2005

Serbian Assistant Minister of Finance Goran Andjelic said today that a bill on customs tariff, which the Serbian government has submitted to the parliament for adoption, envisages the increase of tariff rates for 175 products and that it protects domestic production and removes negative consequences of the implementation of the action plan for harmonisation of economic relations between Serbia and Montenegro.

Andjelic explained at a press conference held at the Serbian government that a higher tariff rate would be calculated for import of agricultural products, leather goods, furniture and white goods appliances. Supporting this by examples, Andjelic said that in the original plan, the tariff rate for the import of apples was 5 percent, and now it is proposed that it should be 15 percent; similarly, the tariff rate of wheat, which stood at 5 percent, should now be increased to 20 percent.

According to Andjelic, lower tariff rates were proposed for the import of 164 products that are important raw materials for production of goods in domestic factories or are products that are not made in Serbia.

He said that the tariff rate for mineral fertilisers should be reduced from 20 to 1 percent, and for stainless steel from 10 to 1 percent.

Andjelic said that with these changes and introduction of 10,268 tariff items that are in line with EU regulations, the average custom rate will not be changed.

He recalled that the Serbian government sent the changes to the customs law to the parliament for adoption. According to the changes, citizens who work abroad may import household appliances free of duty, while the disabled will be able to import motor vehicles without paying duties.

Andjelic said that it will not be possible to sell untaxed new vehicles or give them to someone else for use without paying the tax in the five year period, whereas the deadline for used vehicles is three years.

The changes also include the opening of free shops at international airports as well as giving authorisation to the Serbian government to increase or reduce regulated customs duties.

Assistant Minister of Finance Natasa Kovacevic said that the changes to the VAT law include reduction of tax rates from 18 percent to 8 percent for newly built apartments, frozen food, cereals, medicines, theatre and cinema tickets, fairs, exhibitions and sporting events.

Kovacevic said that it was suggested that VAT not be charged on humanitarian aid, donated imported goods, goods for free shops and disability devices.