Turkey- Fight against tax evasion in Kosovo

1/14/2016 8:30:03 AM

(MENAFN- The Journal Of Turkish Weekly) In cooperation with the Tax Administration government of Kosovo has continued its action for the formalization of businesses and fight against tax evasion.

The citizens will continue to earn money by collecting tax receipts even in 2016.

For purchases from 250 to 500 euros they are refunded 10 euros from the VAT that they have paid. For purchases from 501 to 800 euros they are refunded 15 euros and for purchases of over 800 euros they are refunded 20 euros.

This is stated in the guideline of the Ministry of Fiance which doesn’t define the length of the project for the collection of VAT receipts.

According to official data since April last year citizens of Kosovo have benefited around 1 million euros. Meanwhile the number of those who have submitted VAT receipts was 76 thousand.

According to experts the process of collecting VAT receipts has had a positive impact on the fight against tax evasion or even in the process of the formalization of businesses.

Economy professor Kushtrim Zeqiri told IBNA that the refund of a part of the VAT receipts has attracted citizens.

“This new tax policy will help in creating equal competition in the market of Kosovo because within a short period of time companies who have evaded taxes will be eliminated or they will be obliged to formalize their businesses” he said.

According to him over 30% of the Kosovo economy is informal.

“In 2014 reports from international organizations have stated that informal economy in Kosovo accounts for around 30% which in terms of figures it means 450 million euros a year in uncollected tax. I believe that the project in question will decrease this percentage” he said.

Minister of Finance Avdullah Hoti says that informal economy has been a concern since day one when work has started to tackle this phenomenon.

“We have taken some actions. In the first months in office we have made sure that cash tills cost less. We have also encouraged people to buy only from companies which are formal by inviting them to collect VAT receipts. This has given its effects” Hoti said.

Hoti says that in the past six months there’s been an increase of budget incomes which according to him shows that informal economy has seen a fall.

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