Inadequate tax policies deepen trade deficit

Inadequate tax policies deepen trade deficit

Pristina, 5 April 2016/Independent Balkan News Agency

By Elton Tota

Kosovo continues to face a high trade deficit as a result of inadequate tax policies which have damaged Kosovo producers.

Experts of economic affairs called upon the government of Kosovo to complete the tax reform which it has started.

Analyst Shkelzen Dakaj told IBNA that institutions must increase subsidies for Kosovo producers, who now face strong competition by European goods.

“The Stabilization and Association Agreement with the European Union, enforced on April 1 has opened a new chapter in Kosovo’s foreign trade with numerous benefits, but also with added competitive pressure, for which the private sector with the help of the government must react with investments in expanding capacities and adopting standards applied in the EU”, Dakaj said.

Besides this, Dakaj said that this would open new jobs.

In this context, American Chamber of Commerce demands the finalization of the Administrative Guideline for Tax Relieves, but also to further expand the list of raw materials exempted from customs charges, which.

The American Chamber of Commerce strongly believes that such reliefs would stimulate extra activities which would eventually minimize the potential effects of such relief in budget revenues. /ibna/