The abolition of the VAT exemption for shipments of up to 75 euros, the increase in the VAT rate on books and press, theater and cinema tickets, sports events and other similar measures on the revenue side of the budget provided for in the Fiscal Strategy will lead to an increase in prices that essentially additionally affect those citizens who have less, and who are otherwise exposed to the drastic increase in the prices of various goods and services in the past few years, announced the representative of the European Union and the head of the parliamentary group of the Social Democrats (SD) Boris Mugoša.
In a post on Iks, he pointed out that the stated policy of increasing indirect taxes, i.e. consumption taxes (VAT, excise taxes) is wrong and that instead of increasing the revenue side of the budget by stimulating economic development, increasing competitiveness and productivity, the government chose to expand the tax base. the aforementioned increase in VAT rates in order to "iron out" the constant increase in budget expenditures due to the accumulation of administration and the growth of unproductive spending.
"The key problem is that our economy is growing, but not developing," Mugoša points out.
"...And that's why instead of developing the economy and potentially correcting direct taxes (taxes on 'wealth'), there is an increase in consumption taxes (indirect ones), which leads to an increase in prices and the gray economy," he adds.
On the other hand, says Mugoša, by abolishing or significantly reducing contributions, filling the budget is almost exclusively reduced to taxes, "which is extremely risky in such a structurally vulnerable and disordered economy, susceptible to external shocks".
"Unfortunately, the short-term and billboard economy takes precedence over structural reforms and the development approach," concludes Mugoša.
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