Extended list of fiscal exemptions
Besides cooking oil and grease, sugar, jet fuel for airplanes on international flights, PC computers and software, as suggested by the Government, computer equipment, books and other teaching equipment will also be exempted from sales taxes, as additionally suggested by the parliamentary representatives.
The decision on what could be considered as teaching books and equipment, as well as computer equipment and software will lie upon the competent ministers, only after the appraisal of the Finance Minister.
According to the terms of the Serbian Finance Minister, Mr. Bozidar Djelic – the suspension of sales tax on cooking oil, the price of this product will be reduced by 12 dinars, therefore, as the average household cooking oil consumption in Serbia is approximately six liters per month, this will mean an economy of 72 dinars monthly.
The Government did not approve the tax exemption for baby equipment, children’s food, clothing and shoes up to the ready-made clothing size 8, because „examples from the past related to the abuse of tax exemptions on children’s shoes and clothing for adults clothing and shoes tax evasion“ are well known to the Government.
Additionally, the Government did not adopt the suggestion on the sales tax exemption for natural gas, electric power for households and telephone services for physical persons, because there were „no special reasons for that“. Also, the sales tax exemption for condoms was not approved, because „the sales tax segment in the price of this product is quite insignificant“.
Parliamentary representatives tried to modify by amendments the decisions providing for the mandatory introduction of fiscal cash registers in all retail stores (green markets excepted), as well as the 1000 dinars fines for all consumers caught without the cash register bill at the exit of the store or other services institutions. In that way, representatives from the SPS, SRS and SDP, estimated these decisions as problematic and practically unfeasible, asking who would be responsible to search people’s bags. Considering that the lack of fiscal cash registers and bills would push Serbia into gray economy, Minister Djelic rejected these amendments.