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The Government of the Republic of Serbia

In the service of citizens

Budget collects 40.8 billion in VAT since January 1

Belgrade, 16 March 2005

Serbian Minister of Finance Mladjan Dinkic said today that a total of 40.8 billion dinars has been collected in value added tax (VAT) between January 1 and March 15, up 52 percent from the sales tax revenue in the same period in 2004, when 26.7 billion dinars was collected.

Mladjan Dinkic

Dinkic told a press conference that it is too early for definite conclusions about the increase in budgetary receipts from VAT, given that smaller taxpayers are due to pay their VAT in April.

Dinkic explained that frequent controls by the Tax Administration have led to an increase of 2,000 in the number of registered taxpayers since January 1.

He said that the first refunds of VAT were carried out last month, totalling some 804 million dinars refunded to taxpayers.

Dinkic explained that large exporters received refunds within seven days’ time and the others were refunded within 19 days’ time, even though the law stipulates a return within 15 days for the first group and 45 days for the second group.

Dinkic also said illegal applications for VAT refunds totalled 240 million dinars and he pointed out that those who claim more money than the state really owes them will have to give back that money with an annual interest of 23.5 percent.

He warned that, when it comes to ungrounded refund claims, the policy regarding penalties in the next few months will be more rigid, with a maximum fine of nearly one million dinars.