CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Serbia Mulls VAT Hike

Serbia Mulls VAT Hike

by Ulrika Lomas,, Brussels

22 August 2012

Serbian Deputy Prime Minister Rasim Ljajic has said the government is currently working on tax reform proposals, due to be unveiled in September.

As part of its commitment to reduce the budget deficit and to implement anti-crisis measures, Ljajic promised the reforms would make the tax system more progressive, by implementing tax hikes on wealthy taxpayers while protecting low-income taxpayers.

This move coincides with ongoing negotiations with the International Monetary Fund for international assistance against the economic crisis and the resulting budget deficit.

Under pressure from voters with respect to a possible value-added tax (VAT) hike from 18% to 20%, Ljajic said the government would decide in September if the VAT increase would take place, depending on whether alternative measures are available.

Popular pressure is particularly intense as regards the special VAT regime on foodstuffs, especially on bread which is a key food item for low-income Serbians. Ljajic confirmed that dialogue with bread makers was still ongoing but that he saw “no reasons for increasing the price of bread”.

TAGS: tax | value added tax (VAT) | budget | Serbia | food | tax reform

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »