Besimi: We have a clear trend of fiscal consolidation
Skopje, 2 November 2022 (MIA) - We had a long period of public debates on the whole set of measures, which is part of a strategy for tax reforms adopted by the government in December, Economy Minister Fatmir Besimi said Wednesday on the “Top Tema” show on TV Telma.
The main principle in the discussion, according to him, is to ensure the equity of the tax burden in the economy, to widen the tax base and to increase the efficiency of public administration services. One of the options, Besimi said, is the expansion and reduction of tax exemptions.
Besimi said that the standard VAT rate is 18%, and it is 20% or 22% in the entire region, it is the lowest in the region and we are not saying that it will increase. But in addition to the standard rate, we have two preferential rates, we call the list of those who received preferential rates over time, we harmonize it with what is in the region and in the EU, he added.
The progressive tax on personal income is to enter into force on January 1, 2023, and Besimi noted that during the public debates they wanted to hear the opinions and proposals of public and experts.
According to him, the government's final proposal for these measures is only a matter of weeks.
Besimi also said that we have a clear trend of fiscal consolidation, which means ensuring a fiscally sustainable macro financial framework that gives a clear signal to investors that despite the crisis, we are moving towards stabilizing the balance of public finances, namely the budget deficit and public debt.
He noted that the difference between capital expenditures and the deficit is only EUR 100 million, which means that the Finance Ministry has achieved a high level of development component.
