No increase in price of computers - Ruling majority against higher VAT

The announced increase in value added tax (VAT) on the price of computers and hotel services by 18% will most probably be postponed for two years or the VAT rate will remain at current level of 8% until further notice, daily paper Blic learns from the ruling coalition.

Since G17 plus and LSV strongly advocate for computers and hotel services to be excluded from the announced amendments to the Law, the VAT increase suggested by the Government of Serbia might cause citrus fruit dealers to set aside more money for taxes. According to our information, the Democratic Party has agreed in principle with these requests of G17 plus and LSV.

Ministry of Finance: VAT increase is the only solution

State Secretary in the Ministry of Finance Vuk Djokovic told Blic that the increase in VAT on computers, hotel services and citrus fruit had been suggested because an increase in the tax on any other goods would hit the budget of citizens more seriously. He said that that was necessary because the projected level of deficit of 4.8% in 2010 must not be higher than 4% of the gross national product.