Serbian Finance Minister Sinisa Mali said there was a problem with not issuing fiscal invoices. In order to suppress the gray economy, a prize game will be launched again in the coming months, which will include the collection of fiscal bills.
In an interview with Politika, Minister Mali said that in the last 10 days, the Tax Administration inspected fiscal cash registers in over 500 bakeries in Serbia, and in more than 60 percent of them there were irregularities related to non-registration of turnover, unregistered workers.
“In Belgrade, that percentage is even higher and amounts to over 70 percent,” Mali pointed out.
The Minister stated that out of 508 controlled facilities, irregularities were found in 307 of them. Mali appealed to the citizens to ask for an invoice for every purchase, because hospitals, schools and highways are being built from that money and VAT collection.
The Minister of Finance announced that, in order to suppress the gray economy, a prize game will be launched again in the coming months, which will include the collection of fiscal invoices, but this time the entire process will be conducted electronically.
Domestic VAT collection is better than planned
Mali pointed out that, when it comes to revenue collection, the collection of domestic VAT is better than the plan envisaged by the budget rebalance, and the profit tax is also higher than expected, as well as the contributions on salaries for the month of August.
Asked whether public finances will remain healthy until the end of the year, Mali answered that the one-time increase in the deficit and public debt during 2020 does not bring into question the sustainability of Serbia’s public finances, but contributes to a smaller fall in GDP and accelerated economic recovery.
“For now, the Ministry of Finance remains with the fiscal framework for 2020, which was determined during the preparation of the budget rebalance. The general government deficit is projected at the level of 7.2 percent of GDP, and for the budget of the republic at the level of 6.9 percent of GDP. In addition, public debt will not exceed the limit of 60 percent of GDP,” Mali pointed out.
Speaking about how the state is trying to stimulate demand, he pointed out the effects of the measure of payment of 100 euros of aid and stated that the data on VAT payment for last month show that instead of the expected 379 million euros, the inflow was 417.5 million euros.
Mali emphasized that these are incredible results in times when the whole world is facing a crisis when it comes to consumption.
Asked whether he would meet the demands of the union and increase the minimum price of labor, Mali reminded that last year the minimum price of labor was increased by 25 euros, which did not happen years ago.
He pointed out that this year the situation is specific due to the pandemic and that one must be careful and smart when making a decision about it, together with the representatives of the unions and employers.
“It is always difficult to reconcile their wishes and attitudes, but it is up to us to try. So, first they will meet and try to agree, so we will see what kind of proposal they will come up with,” said Mali.
Whether there will be salary increases in the public sector at the end of the year, Mali answered that for now he can guarantee that salaries are safe and that there will be no reductions, just like pensions.
When asked who will pay the Air Serbia loan of 56.5 million dollars, which will be collected in September, since that company informed the creditor that it could not settle the debt, Mali answered that all airlines in the world are in a very difficult situation.
He reminded that the EU has adopted new rules related to state aid, which are significantly relaxed compared to the existing ones and enable the state to help with the liquidity of the economy, as well as in individual situations with companies where business difficulties were caused by a pandemic.
The Minister pointed out that Air Serbia is a company of national interest and that the state will help it.
“Negotiations are underway with creditors whose details I cannot give, but what I can repeat is that we will certainly help Air Serbia. Together with our partners from the Etihad, we are working on solving the problem,” Mali said, RTS reports.
