Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Budget unaffected by tax breaks for purchasing first flat

Belgrade, 19 September 2007

State Secretary at the Ministry of Finance in charge with the coordination of the ministry’s directorates Miodrag Djidic stated today that tax breaks for purchasing the first flat have not affected the budget.

Miodrag Djidic

At a press conference held at the Serbian government, Djidic said that as of July 8, when the law was enforced, a total of 267 demands for reimbursement of VAT for purchasing one’s first flat were submitted. He added that 70 demands, worth over RSD 48 million, were accepted.

As for tax reliefs for transferring absolute rights for buyers of first flats, as many as 2,275 demands were submitted from July 8, of which 107 were settled, which represents a tax relief of a little over RSD 20 million.

We expect more demands in the upcoming period, particularly by young people who are trying to solve their housing problems, said Djidic and specified that most demands for the reimbursement of VAT were submitted in Belgrade (80), Novi Sad (72), Nis (59) and Kragujevac (56).

Dejan Stojanovic

Director of the finance ministry’s Tax Administration Dejan Stojanovic stated that in the first eight months of 2007, gross collection of public revenues was increased by 17.6% against the same period in 2006. He also said that around RSD 645.4 billion was collected this year, whereas last year the number stood at RSD 548.5 billion.

Stojanovic said that the collection of public revenues the Tax Administration is in charge of rose by 16.4% in comparison with 2006 and it stood at RSD 427.9 billion, whereas in the same period last year it amounted to RSD 367.5 billion.

The greatest rise in collecting carried out by the Tax Administration in 2007 was marked in the collection of VAT, which stood at 30%, stressed Stojanovic and added that the increase in the collection of contributions for social insurance stood at 20.5%, excise at 17.2% and property tax at 11.7%.

He also added that the Tax Administration participates with 66% in the overall collection of public revenues.

Speaking about the effects of the work of tax police in the field, Stojanovic said that in the first eight months of 2007 the Tax Administration achieved total effects of almost RSD 17.1 billion, which is approximately RSD 65 million more than last year, adding that the state budget was not affected despite the reduction in the income tax from 14% to 12% which was enforced in January 2007.

He also said that 176 charges were filed against 306 persons in the first eight months of 2007 for tax evasion. Stojanovic remarked that this data shows the increased activities of Tax Administration’s control organs regarding financial control of tax payers.