Measures for jobs in the private sector are key to a strong impetus for the survival of businesses and their activation with the onset of the crisis, and are part of the fiscal policy intervention measures proposed by the Serbian Economists Alliance.
The document “Contribution to the Initiative for Defining Anti-Crisis Economic Policy Measures” published on the website of the Federation of Economists of Serbia states that specific proposed measures related to jobs should be implemented for at least three months, with the possibility of extension.
Ahead of tomorrow’s presentation of a set of economic measures announced by President Aleksandar Vucic, the Federation of Economists of Serbia, among other things, suggests among the measures for jobs that the employer does not pay taxes on salaries and contributions for employees who are on unpaid leave, and that compensation for paid leave must be at least equal to 70 percent of the net minimum wage in Serbia.
The proposal is also to introduce a special cash benefit for employees on unpaid leave, which cannot be less than 60 percent of the net minimum wage, which would be paid from the budget.
The employer, as suggested by the Union of Economists of Serbia, would pay 50 percent of taxes on wages and contributions for full-time and part-time employees.
Under this proposal, the employer would not pay taxes on wages and contributions for employees who are subject to mandatory isolation and for employees who do not work as a result of an order from government agencies.
In these cases, the employees would receive compensation from the budget as employees on unpaid leave.
Among the intervention measures proposed by the Union of Economists of Serbia are the suspension of payment of income tax and property taxes for at least three months.
After three months, as they propose, the income tax will be paid in the amount of 50 percent of the calculated amount for 2020.
They also demand that the payment of a lump-sum tax be suspended for at least three months, which, they said, would facilitate the position of entrepreneurs.
The Federation of Economists of Serbia believes that interest rates on arrears of taxes and payment of para-fiscal taxes such as company fees, membership fees, environmental taxes and the like should be suspended for at least three months.
They also propose to consider reducing the amount of corporate income tax from 15 percent to 10 percent after the state of emergency.
Among the measures on the side of budget expenditures to be taken are the planned budget expenditures for pensions and public investments.
They argue that the possibility of moderate wage cuts in the public sector should not be ruled out if the crisis lasts more than a few months.
They believe that it is necessary to delay investment projects that have little contribution to economic growth and to divert these funds to finance anti-crisis program measures.
They also state that a review of planned expenditures and their reduction in all public procurement positions that have nothing to do with health, social and economic protection in a crisis is needed.
They also believe that spending on health and social care is urgently needed.
In parallel with the interventions of fiscal policy, it is necessary, according to the Union of Economists of Serbia, to define a set of measures that will entail a dramatic increase in the liquidity of the economy, whose implementation must, as they say, be record-fast, RTV reports.
