Q:
A:
Strengthening SMEs basis of long-term economic stability
Belgrade,
21 March 2012
Prime Minister Mirko Cvetkovic said that the aim of the government is to attract large international investors and to strengthen and encourage small and medium-sized enterprises (SMEs) which can play an important role in reducing unemployment in Serbia.
File photo of Mirko Cvetkovic
Author:
Tanjug
Cvetkovic said in an interview to the latest edition of the “Nedeljnik” magazine, published by the "Press" daily, that it should not be expected that the state solves all problems on its own and that is why it is extremely important to encourage entrepreneurial spirit among all citizens.
The Prime Minister said that the long-term economic stability of the whole society lies in the development and strengthening of SMEs, adding that the state will continue to reduce red tape in order to facilitate the opening of such businesses.
He recalled that since 2008, the government has provided, through international financial institutions and through the support of foreign governments, more than €300 million in extremely favourable credit lines intended exclusively for the SME sector. Speaking about income tax, Cvetkovic said that the government completely abolished the payment of contributions for a period of one year for newly-employed workers up to 30 years of age and over 45, and for all other employees it reduced income tax by 30% also for the period of one year.
These measures did not lead to increased employment. This shows that the problem is not in the amount of contributions and taxes which stand at 38% of the gross salary and are lower than the European average, which is 39 %.
Cvetkovic said that the new model of economic growth, which was adopted at the initiative of President Boris Tadic, envisages a reform of the tax system that will further reduce income contributions and taxes, which will improve the competitiveness of Serbian products in the international market.
The Prime Minister said that the long-term economic stability of the whole society lies in the development and strengthening of SMEs, adding that the state will continue to reduce red tape in order to facilitate the opening of such businesses.
He recalled that since 2008, the government has provided, through international financial institutions and through the support of foreign governments, more than €300 million in extremely favourable credit lines intended exclusively for the SME sector. Speaking about income tax, Cvetkovic said that the government completely abolished the payment of contributions for a period of one year for newly-employed workers up to 30 years of age and over 45, and for all other employees it reduced income tax by 30% also for the period of one year.
These measures did not lead to increased employment. This shows that the problem is not in the amount of contributions and taxes which stand at 38% of the gross salary and are lower than the European average, which is 39 %.
Cvetkovic said that the new model of economic growth, which was adopted at the initiative of President Boris Tadic, envisages a reform of the tax system that will further reduce income contributions and taxes, which will improve the competitiveness of Serbian products in the international market.
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