Kosovo’s finance ministry has said no tax will be levied on imports of information technology equipment and spare parts for production equipment starting this week.
The government is implementing a series of measures aimed at lowering the tax burden on the private sector and reducing red tape and the share of informal economy in an effort to attract domestic and foreign investors, the finance ministry said in a statement on Sunday.
The ministry is also considering restructuring of personal income tax legislation, VAT law and the tax on administrative procedures, the statement reads. Kosovo’s government recently decided to exempt all businesses from customs and excise duties levied on imports of raw materials, semi-finished products and production lines.
By reviewing the tax legislation, the finance ministry aims to assist private sector development, especially the manufacturing sector, by providing it with greater opportunities to develop products and deliver services to the local and regional market, the statement added.
In March, Kosovo’s minister of trade and industry, Bajram Hasani said the World Bank and Kosovo have agreed to launch a project on improving the competitiveness and export readiness of local firms supported by a 14.3 million euro ($17.6 million) loan. The project will support product certification for export markets, strengthen the capacity of export-oriented firms and reduce the cost of business inspections.
The inflow of foreign direct investments (FDI) in Kosovo increased to 25.4 million euro ($31.2 million) in January, as compared to 19.6 million euro in the same month a year earlier, according to central bank data.