Serbia is getting closer to its investment rating, which is expected in 2020, which would be the first time the country has received such a rating, says Finance Minister Sinisa Mali.
Serbia will better position itself in the global financial market and reach an investment rating faster, said Mali, adding that raising the credit rating is important news for all citizens of Serbia, but also for businesses and the economy in general.
“For citizens, this means lower interest rates and better financing conditions for businesses. This is the best confirmation that the country’s risk is reduced, which is what banks estimate when determining the level of interest rates. All of this encourages businesses to invest more, produce, expand capacity, employ people, all of which lead to even more economic growth”, Mali said for Pink.
Mali said that Serbia has returned to the international financial market, that it is the first economic growth in Europe in the third quarter, and that the Financial Times has declared the country a world leader in attracting foreign direct investment. We recognized, he added, that the business environment needed to continue to work on tax relief, but of course also creating conditions for young people to stay and employment.
“As for what we announced and accomplished, I think that citizens can be convinced of it every day”, said Mali.
Asked about changes in tax policy, the minister says they are aimed mainly at relieving the economy and citizens.
“Taxpayers are provided with numerous tax incentives to stimulate economic growth, capital investment and a more even distribution of national income. A set of tax laws we have recently adopted will help economic growth and job creation”, the minister said.
According to him, the payroll tax is being reduced from 62 percent to 61 percent to encourage new employment and pay raises, tax incentives for new employment are also provided, which stimulates employers.
“The relief in the form of a 70% reduction in the tax base and contributions applies to newly arrived persons, ie returnees from abroad, who are thereby incentivized to stay in our country”, Mali said.
An important change, he added, is that the companies that carry out the innovation activity receive an incentive in the form of tax exemptions and contributions to the salaries of the founders who are employed in such a company, up to a salary of up to 1,200 eruos.
“We have been able to increase salaries and pensions, as well as the minimum cost of labor, and to create a responsible and development budget for 2020”, says Mali.
Mali said that as early as December 2019, the average salary in Serbia exceeded 500 euros.
He stated that in the health sector, medical technicians will have an average wage increase of 37.9 percent in 2020 compared to the period before fiscal consolidation, and in the elementary and secondary education sector, employees will have an average wage of 29.7 percenr in 2020 compared to 2014.
“I know that this is low for many, and that there are a lot of people who receive less than that. But, admit, it was unthinkable just two or three years ago, to mention that amount in the context of average earnings”, the minister added.
Regarding pensions, Mali says that pensions for 1.7 million citizens will be adjusted twice a year, according to the “Swiss formula”, which means 50 percent of the income at the rate of inflation and 50 percent of the increase in earnings.
He is very proud, he says, of the comprehensive Serbia 2025 plan, which has been worked on very hard.
Mali also talked about concrete projects, such as the start of construction of the Moravian Corridor, the completion of Corridor 10, the reconstruction of railway lines.
“We recognize other ways of investing, notably in innovation, and we will have a youth housing program. This speaks to the seriousness of our work and commitment to development. In 2020 we will be engaged in public investment in local governments. We have already received information on them the state of the water supply and sewerage network in these cities, we have a clear plan of activities and we will work hard to improve that municipal infrastructure”, the minister said for Pink.
