Effects of the Law on Extra Profit

On the occasion of the press conference organized to celebrate the anniversary of the proclamation of the Law on Extra Profit, the Finance Minister, Mr. Bozidar Djelic declared that the tax apportionment according to the provisions of the mentioned law will continue to be applied by the end of October of the current year, after which period the Serbian Parliament should decide upon its cessation of validity. After that, there will be no further tax decisions issued.

– There is no tax exemption for those who received their tax apportionment, and the tax collecting won’t be suspended, declared Minister Djelic. According to his estimations, this will bring some 200 million DEM to the Republic Funds, since during the following month, new funds will be collected – from the remaining monthly installments from those who couldn’t pay the totality of the debt, from the bankruptcy estate and from the privatization.

The “biggest” designated taxpayers of this single-step law on Extra-Profit are the following, with the apportioned tax amount: Beobanka with 127.5 million DEM, Investbanka with 87.7 million DEM, Astra banka with 75.9 million DEM, “Beogradska banka” with 64 million DEM, the sugar factory “Dimitrije Tucoviæ” with 36 million DEM, Beopetrol with 34 million DEM, DMB holding 28.7 million DEM and “Progres” with 23.3 million DEM. Until the present day, the “biggest” payers of the apportioned obligations are the following, with the amount already paid: Astra banka with 70 million DEM, “Simpo” with 5.1 million DEM, Stankom with 4.6 million DEM, Mr. Zoran Kariæ with 4.1 million DEM, Delta M with 3.4 million DEM, Pink with 2.4 million DEM, Galenika with 1.8 million DEM, and C market with 1.7 million DEM. Minister Djelic categorically denied that this law was specially “designed” for the Kariæ family, because all the apportioned amounts were calculated upon the same rules, and exclusively based on documentation. Only “Progres” did not pay a single dinar of the obligation, and if it doesn’t comply with the tax decision, the company will go bankrupt, and the State will collect the debt from the bankruptcy estate, said Djelic.

– During September and October, we will additionally examine the cases of the connections between persons involved, and together with the Ministry of Internal, we will see if there were any “State funds” overflowing to “private pockets”. This single-stepped law cannot be in effect for a longer future, because it might discourage foreigners from investing, still, a great majority of the injustice done, will be repaired through the future Law on Tax Administration, added Djelic.

During the next two months, a special importance will be given to the extra-profit tax collection from luxury real-estate property, whose owners can be ready to expect tax decisions. Experts from the Civil Engineering Ministry are already on field, investigating the buildings on Zlatibor, Kopaonik, in Niš, Novi Sad, Subotica and other cities.

According to the Minister, 120 million DEM were collected by mid-August, 1,120 new tax decisions were issued upon a total of 784.7 million DEM. The major part of the tax is related to the primary and the “gray” currency issue, quotas and building estate – so that 13.5 million were collected from residences and 3.5 million from apartments. Tax was not collected from a certain number of built apartments, because, according to the Civil Engineering Minister Dragoslav Sumarac, they are expected to be restituted (as the case of the former Minister of Justice, Mr. Dragoljub Jankovic, who was given three apartments, and who won’t be able to keep them all, even when paying the total amount of the tax). Even if there will be no further extra-profit tax decisions issued, modifications of other regulations will be carried out, so that the legalization of residential estate will be much more expensive than for other real-estate – the administration will be ruled by cities and communes, who will be charged to regulate these obligations.

According to the presented data, 367 taxpayers reduced their obligations by 153.7 million DEM, and 514 proceedings of a total value of 30 million DEM, were suspended. All of them, produced documented evidence on legally spent funds, and competent committees of the Serbian Parliament were informed about all cases separately.

According to the estimations, in the period since the beginning of the year to August 15th, 80 million DEM have been collected, and a piece of this “cake” will be distributed to some 1.6 million addresses. By September 25th, every retired person will receive 900 dinars (according to the decision of the Federal Constitutional Court), 100,000 Child allowance beneficiaries will receive two paychecks in the total amount of 1,000 dinars, and during the month of September the amount for external care beneficiaries will be doubled (50 000 people concerned, 115 million dinars investment). A doubled amount will also be distributed to the foster families taking care of orphans, and help will be given to disabled persons associations. It is also planned to create a special fund for crediting some 10,000 students; they will eventually have to return this money, and the Fund will thus be renewed, declared minister Djelic.

During the month of September, it is also planned to cover a whole month of arrear to the Work Market, which represents a total sum of 450 million dinars of investment.