Skopje, 7 July 2023 (MIA) - The law on solidarity contribution is not part of the systemic tax laws but a one-off solidarity contribution that relates to companies that have made profits surpassing the average in recent years of crises, said Prime Minister Dimitar Kovachevski on Friday.

PM Kovachevski was quizzed over the business sector's remarks that it is not enough that the Government withdrew the draft-law on solidarity tax from the Parliament but that it must terminate it.

"Only the amount of the additional rate is being taxed. The procedure is the same as the one used when the state supported companies, their managers and shareholders, through an amount of over EUR 1 billion, during the two years of major crises," said Kovachevski.

He added that the state supported companies to maintain their liquidity and jobs during the Covid crisis, resulting in companies having lower or same profits but also businesses with higher profits. The latter are the ones that will be subject to the solidarity tax.

"Let's not forget, the state financed company wages during the corona-crisis, provided funds through the Development Bank for maintenance of their liquidity, adopted measures for cancellation of customs duties, reduced VAT rates. Some companies operated with lower profits, others with the same profits as before. However, a portion of the businesses had higher profits and this solidarity tax relates to them," said Kovachevski.

Photo: MIA