New fiscal reform soon to come

Mr. Bozidar Djelic, Minister of Finance and Economy in the Government of the Republic of Serbia, announced that „a major fiscal reform“ would be initiated by the end of this year, which is to be focused on the issue of the VAT. „The introduction of the VAT, together with the fight against the gray economy, provides for conditions for a general tax rate reduction from the current 20 percent rate“, declared Mr. Djelic to the Jagodina Local TV Station „Palma Plus“, as transmitted by the Beta Agency.

According to Minister Djelic, this is the interest of all, „for those who are not paying their taxes are not stealing from the State, but from the citizens“.

Mr. Djelic also announced that the Tax Administration and the Tax Police would be „strongly equipped“, because a prerequisite for a general tax rate reduction is that everybody is paying taxes.

„In the current of the year, the State will create a Guarantee Fund. This will provide the Government with the capacity to guarantee for a half a billion of the commercial banks credit capital, which the banks would use to credit new entrepreneurs without property mortgage“, declared Mr. Djelic, estimating that commercial banks would thus be additionally stimulated to credit development of small and mid-sized companies, making it possible to create tens of thousands of new employment opportunities in the current of 2003.

The Finance Minister also announced „thorough cleaning in the domain of insurance companies“ for this year, as well as that special attention would be focused on the regulation of their relationships, upon adoption of the Constitutional Chart between Serbia and Montenegro.