Q:
A:
Government not to increase VAT
Belgrade,
3 January 2009
Minister of Finance Diana Dragutinovic said that the Serbian government will not increase VAT in order to provide funds envisaged by the 2009 budget.
In an interview with the Beta news agency, Dragutinovic said that better control of customs and tax revenues will compensate for a decrease in exports, which will occur as the consequence of the global financial crisis.
The VAT increase is the last measure the government will implement if budget revenues are not enough to fulfil obligations towards budget users, said Dragutinovic.
She stressed that customs revenues have already decreased during previous months, which will continue in the upcoming period.
The Minister added that the 2009 budget envisages less customs revenues due to the implementation of the Transitional Trade Agreement.
Dragutinovic said that all the government’s measures must be in accordance with the International Monetary Fund (IMF) and must aim to secure an 8% inflation for 2009.
In order to maintain Serbia’s financial stability, the government and the National Bank of Serbia have signed a Memorandum with the IMF as a guarantee that the IMF will approve a new arrangement for Serbia, which will include the possibility of withdrawing $520 million, said Dragutinovic.
The Minister of Finance expects prices of some goods to decrease, which may help achieve the planned inflation.
The VAT increase is the last measure the government will implement if budget revenues are not enough to fulfil obligations towards budget users, said Dragutinovic.
She stressed that customs revenues have already decreased during previous months, which will continue in the upcoming period.
The Minister added that the 2009 budget envisages less customs revenues due to the implementation of the Transitional Trade Agreement.
Dragutinovic said that all the government’s measures must be in accordance with the International Monetary Fund (IMF) and must aim to secure an 8% inflation for 2009.
In order to maintain Serbia’s financial stability, the government and the National Bank of Serbia have signed a Memorandum with the IMF as a guarantee that the IMF will approve a new arrangement for Serbia, which will include the possibility of withdrawing $520 million, said Dragutinovic.
The Minister of Finance expects prices of some goods to decrease, which may help achieve the planned inflation.
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