Skopje, 2 November 2022 (MIA) – There will not be an increase of tax rates or introduction of new taxes, the tax policy reform will be based on the expansion of the tax base and in relation to VAT, the preferential rate will be changed in line with the practices in the region, said Minister of Finance Fatmir Besimi on Wednesday. In response to a reporter's question, Besimi underscored that for now he will not be sharing details about the tax reforms, because the government will hold meetings with business representatives once again, in order to review their remarks. On whether progressive taxation will be introduced in 2023, Besimi said for now he doesn't have the answer to this question because discussions are still ongoing regarding the proposal, and once the government irons out all the details, the plan on the tax reforms concept will be published in November. According to the Minister, the expectations for an increase in tax revenue are mainly based on projections for the growth of the economy and prices, as well as the improved and increased efficiency in tax collection and the reduction of the informal economy. Regarding wages in the draft budget, Besimi said that since the beginning of 2022, despite the crisis, the government has remained committed to increasing wages in public administration and aligning them with the minimum wage and pensions. “In addition to the fact that the Law on State Administration establishes a methodology for calculating wages in public administration, the focus is on creating a single general collective agreement for public administration, as a result of which this methodology would be reflected in the other institutions as well,” said Besimi. For example, he said, if the inflation is 10 percent, and the minimum wage is set to 18.000, then it would mean a linear increase of Mden 1.800, which would entail an increase in the wages of public administration workers, for which funds are provided in the Budget. Besimi stressed that an increase in the number of employees in the public administration is not planned, but through the mobility model, employees could be redistributed to institutions which are experiencing shortages, such as the inspection services. Regarding fiscal consolidation, Besimi said one of the envisaged measures is the cutting of compensation for official travel within the country. “Taking into account all of these aspects, the inflation and the increase in wages, the wage section of the Budget is expected to grow by 5 percent in relation to the rebalanced Budget,” said Besimi. ad/nn/