Special VAT rate increased from 8 to 10% - Government adopts set of laws to reduce budget deficit

The Serbian government adopted at its session on Thursday a set of bills aimed at reducing budget deficit and achieving fiscal consolidation and sustainable economic and financial stability of Serbia, it was announced on the Serbian government's website.

The government adopted the Bill on amendments to the Law on value added tax (VAT), proposing the increase of a special VAT tax from 8% to 10%, and the increase of tax on trade and import of personal computers and components from 8% to 20%, it was said in the release.

Other bills adopted are the Bill on amendments to the Law on corporate income tax, Bill on amendments to the Law on personal income tax, Bill on amendments to the Law on contributions for mandatory social insurance, Bill on amendments to the Law on tax procedure and tax administration, Bill on amendments to the Law on budget system and Bill on amendments to the Law on pension and disability insurance.

The Bill on amendments to the Law on tobacco was also adopted, whose application will curb illegal trade in tobacco and tobacco products.

The Serbian government forwarded the above-mentioned bills to the Serbian parliament for urgent consideration.