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The Government of the Republic of Serbia

In the service of citizens

Public administration employee salaries to be reduced

Belgrade, 10 April 2009

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today that the government at its next session will adopt bills concerning the reduction of the salaries of public administration employees and the invalidation of all car number plates except Serbian plates.

Speaking with TV B92 last evening, Dinkic said all commercial number plates and other types of vehicle registration plates which are not Serbian will not be valid in Serbia any more and the owners of these vehicles will have to pay customs duty and VAT.

He said that these customs and VAT revenues are expected to bring nearly RSD 7 billion to the Serbian budget, adding that within three months of the law being passed owners of these cars will have to pay 10% customs duty and 18% VAT on the basis of an estimate of the market value of their cars.

He said that Serbian citizens and foreigners in Serbia on temporary business will not be able to drive cars with Montenegrin, Bosnia-Herzegovina, Romanian and Bulgarian number plates.

Speaking about reducing the salaries of public administration employees Dinkic said that the government’s latest set of savings measures envisages the reduction of salaries of public administration employees, in the government, ministries, municipalities, the National Bank of Serbia and chambers of commerce.

He said that the salaries of MPs will also be reduced and they will no longer receive their daily allowance.

Dinkic stressed that Serbia is not facing bankruptcy, adding that the state is in difficulties because of a crisis that started outside the country and the government is implementing measures to deal with its effects.

He said that representatives of the Swedish company IKEA will visit Serbia in May because they plan to invest in the production of furniture, adding that a German company is interested in beginning car parts production in Serbia which will create 2.000 new jobs.