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Serbian parliament adopts amendments to several tax laws
Belgrade,
29 June 2007
Serbian parliament adopted today the Law on amendments to the Law on Tax Procedure and Tax Administration, the Law on amendments to the Law on Property Tax, the Law on amendments to the Law on Value Added Tax (VAT), the Law on amendments to the Law on Excise Tax and the Law on amendments to the Law on Customs Tariff.
According to the amendments to the Law on Property Tax the tax on transfer of absolute rights while buying a house is reduced from 5% to 2.5%, and that tax is not payable on first purchase of house.
The first time buyer of a house is also relieved from paying VAT which is now paid at a rate of 8% while buying a newly built house, and the state will refund the buyer for that tax.
It is expected that on the basis of these tax relief measures as well as reduction of VAT for personal computers from 18% to 8%, the budget will be smaller by RSD 2.5 million during the second half of the year.
According to the amendments to the Law on Excise Tax this tax is removed on import of non-alcoholic drinks and fruit juices, and from January 1, 2008 the excise tax on domestic cigarettes and domestic cigarettes will be in the same amount, and the minimum excise tax on cigarettes has been increased.
It is estimated that proceeds from the budget on the basis of changes in excise tax on cigarettes during this year will be around RSD 39.9 million, which is some RSD 13 million more than in the previous year.
Excise tax on gas for vehicles has been introduced due to large demand for it. It is expected that the introduction of this tax will secure budget proceeds worth RSD 1 billion, which will compensate for the removal of tax on non-alcoholic drinks and fruit juices.
The amendments to the Law on Tax Procedure and Tax Administration allow local self-governments to establish, control and collect tax proceeds.
The Serbian Tax Administration will decide on complaints against local-self governments in this matter, which will allow double verification of the tax procedure and reduce complaint expenditures.
It is envisaged that those citizens who have yet not paid their taxes are allowed to found companies as potential new tax payers.
The Law on Customs Tariff was amended in accordance with EU regulations, and the customs tariff on tobacco products is reduced, so that the domestic tobacco industry is protected.
Sasa Jankovic was chosen at the session as citizens’ ombudsman, and Rodoljub Sabic as Commissioner of Information of Public Importance.
The first time buyer of a house is also relieved from paying VAT which is now paid at a rate of 8% while buying a newly built house, and the state will refund the buyer for that tax.
It is expected that on the basis of these tax relief measures as well as reduction of VAT for personal computers from 18% to 8%, the budget will be smaller by RSD 2.5 million during the second half of the year.
According to the amendments to the Law on Excise Tax this tax is removed on import of non-alcoholic drinks and fruit juices, and from January 1, 2008 the excise tax on domestic cigarettes and domestic cigarettes will be in the same amount, and the minimum excise tax on cigarettes has been increased.
It is estimated that proceeds from the budget on the basis of changes in excise tax on cigarettes during this year will be around RSD 39.9 million, which is some RSD 13 million more than in the previous year.
Excise tax on gas for vehicles has been introduced due to large demand for it. It is expected that the introduction of this tax will secure budget proceeds worth RSD 1 billion, which will compensate for the removal of tax on non-alcoholic drinks and fruit juices.
The amendments to the Law on Tax Procedure and Tax Administration allow local self-governments to establish, control and collect tax proceeds.
The Serbian Tax Administration will decide on complaints against local-self governments in this matter, which will allow double verification of the tax procedure and reduce complaint expenditures.
It is envisaged that those citizens who have yet not paid their taxes are allowed to found companies as potential new tax payers.
The Law on Customs Tariff was amended in accordance with EU regulations, and the customs tariff on tobacco products is reduced, so that the domestic tobacco industry is protected.
Sasa Jankovic was chosen at the session as citizens’ ombudsman, and Rodoljub Sabic as Commissioner of Information of Public Importance.
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