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Tax Committee Meets With Tax Policy International Monetary Fund Mission

Advocacy

28.09.2010. | Belgrade

On September 28, representatives of the AmCham’s Tax Committee, Chairman Igor Lončarević of KPMG and Vice-Chair Zoran Skopljak of Karanović & Nikolić Law Office, as well as Milica Bisić of KPMG, met with a Tax Policy IMF Mission consisting of Martin Grote and Ernesto Crivelli at AmCham’s offices.

The meeting was an opportunity to focus on the most important challenges for our business community with respect to Serbia’s tax regime, as well as to pinpoint several priorities from the Tax Committee’s annual agenda. Topics discussed included the proliferation of earmarked revenues and an increase in local charges, suggestions for improvement of the VAT Law, transfer pricing, the expediency of appellate procedures to the decisions of the Tax Administration as well as the non-binding character of the opinions of the Ministry of Finance.

Participants agreed that long-term fiscal policy from the central level and strong enforcement of the Ministry of Finance of this policy are key preconditions for suppression of the proliferation of earmarked revenues and increased charges at the local level. The current situation with 32 specific funds at the central level renders the fiscal system less transparent for investors and less efficient in terms of prioritizing expenditures at the Government level. Tax Committee representatives pointed out the need for VAT Law adjustments in accordance with recent changes of the EU regulations, which provide place of recipient of service as a relevant position for treatment of services. Finally, better cooperation and coordination between the Ministry of Finance and the Tax Administration, as well as transparency in their work, were recognized as essential elements of a predictable business environment.