Public debate on VAT Draft Law

Yesterday, in the Vojvodina Chamber of Commerce – in Novi Sad, took place a public debate on the proposal of the Value Added Tax (VAT) Law (suggestions on the VAT Draft Law can be sent to
rasprava@rujp.sr.gov.yu). The main participants to the debate were: Mrs. Milica Bisic, deputy Minister of finance and economy, Mr. Djerdj Pap, Assistant Director of the Fiscal Administration, and Ms. Natasa Kovacevic, VAT introduction project team-member.

The discussion with the businessmen based in Vojvodina covered the explanation of the essential elements of the VAT, the new tax calculation mechanisms, and the provided tax exemption opportunities for the taxpayers. Some 300 participants expressed their suggestions and comments on the new taxing system, which will enter into effect on January 1st 2004. According to the businessmen, this deadline is quite short because the whole economic system is not sufficiently ready to support the introduction of the new fiscal system. The farmers from Vojvodina, expressed their doubt on the VAT stimulating the agricultural production in the Province.

Considering the complexity of the new fiscal system, the public debate ended in
the agreement on the organization of another two educational meetings, aimed to additionally clarify to the businessmen in Vojvodina other details on the VAT calculation methods. Businessmen from Belgrade will be meeting the Finance Ministry and the Fiscal Administration representatives tomorrow, on the occasion of the last in the series of public debates on the Value Added Tax Draft Law.

All the comments and suggestions from the public debate will be forwarded to the Ministry of finance and economy, which shall prepare the Proposal of Law, and then submit it to the Serbian Parliament for consideration and adoption, by the middle of September.