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The Government of the Republic of Serbia

In the service of citizens

Tax incentives to result in big effect on employment

Belgrade, 3 January 2007

Serbian Minister of Labour, Employment and Social Policy Slobodan Lalovic today expressed expectation that tax incentives for employers will result in big effects on employment in Serbia and that their real effect will be known in a few months’ time.

Slobodan Lalovic

Lalovic said that the Ministry formed a special team that will monitor the situation in this area and explained that employers will now pay 62.7% instead of 73.1% for taxes.

Speaking on privatisation of public companies and possible labour surplus, the Minister said that restructuring of eight public companies, with the exception of rail company Zeleznice Srbije, is practically over. He also noted that the number of workers in all these companies has been cut.

Lalovic said that he does not expect that many more workers will be redundant, but quite opposite – that these companies will start employing qualified labour.

The Minister said that redundant workers will be taken care of through various programmes, especially one called “From severance pay to new job”.

Already now there is a big demand but many reject to accept jobs they are offered, the Minister said and added that it is realistic to expect that 2007 will be the last difficult year for the Serbian citizens and explained that in 2008, after certain politician terms are met, Serbia should become “oasis of investment”, which will successfully solve the problem of unemployment.