New tax package protects living standards, Kosovo’s PM says

New tax package protects living standards, Kosovo’s PM says

Pristina, 2 September 2015/Independent Balkan News Agency

By Elton Tota

In today’s government meeting, Kosovo’s PM, Isa Mustafa said that the new tax package benefits people with low and medium incomes.

Mustafa considered this package as an appropriate package for the economic development of the country.

“I believe that this package benefits economic development and the citizens of the Republic of Kosovo. The new tax package reduces VAT from 16 to 8% and this benefits all those households with low and medium incomes”, Mustafa said.

Mustafa said that the tax package protects living standards.

“This package doesn’t benefit those who have high incomes, because the structure of consumption goods is built in such way that it benefits those who have low and medium incomes, in order to protect living standards”, Mustafa said.

The current package entered in force on September 1 and this package VAT cuts from 16% to 8% for several basic products, communal services, pharmaceutical services, IT and school books.

VAT on products which do not benefit a cut, increases to 18%. /ibna/