KNEZEVIC: Too early to decrease taxes and contributions

Minister of Economy Goran Knezevic stated on Thursday, August 18, that the Government of Serbia would work on improving the tax system, but that it wasn’t yet time to reduce taxes and contributions.

Knezevic said for Radio Beograd 1, regarding the request of the Business Support Network for reduction of income taxes and contributions and implementation of progressive salary taxation, that his ministry would respond to the request and implement everything in their power in the period ahead.

He noted that the tax system was complicated and that it couldn’t be changed overnight.

– It’s good to hear such requests. We all support increased production and smaller taxes and contributions. The question, however, is whether it’s possible for 1.7 million pensioners to get their pensions, whether it’s possible for millions in public services and the administration to get their salaries and whether it’s possible for our school and health systems to function if we reduce taxes and contributions – Knezevic said.

The minister pointed out that Serbia had the lowest taxes and contributions in the region and that they were at the level of countries with the best taxation systems.

Knezevic reminded that the amendments of the Law on Local Self-Government Financing were being integrated at the moment and announced that some of the measures regarding tax policy would be prepared for the 2017 budget as well.

Ministarstvo privrede Republike Srbije

BSN-Mreža za poslovnu podršku Beograd

Ministry of Economy

Goran Knezevic

taxes

contributions

lowering taxes and contributions

Business Support Network

Law on Local Self Government Financing

2017 budget