Government's package of measures to be ready in early July - New plan to fight the crisis

- The Government of Serbia is preparing a new anti-crisis package of measures - Blic learns from the top officials of the state.

It will be ready in ten to fifteen days, which is the reason why people in the building at 11 Nemanjina Street do not think that they should send special replies to the businessmen from whom they have recently received draft measures for overcoming the crisis.

The new package of anti-crisis measures includes amendments to a set of laws: the Law on Banks, the Law on Bankruptcy and Liquidation of Banks and Insurance Companies, the Law on Deposit Insurance, the Law on Deposit Insurance Agency, and the Law on Mortgage.

- Another brand new system law will be passed and it will regulate the stability of financial sector in the conditions of the system crisis - Blic learns from the source close to the Government.

The laws will be amended in accordance with the recommendations of the European Commission and, although they are financial laws, the source of Blic claims that this set of laws will be put in effect for the time to come and that it is not in connection with the crisis in Greece.

- Unlike the legal solutions of some other countries that require spending of huge budget funds, our solution perfectly fits the size and volume of the financial sector and real capacities of Serbia - says the source of Blic.

Unlike the new package of measures, which will enjoy the support of the whole Government, the tax reform is seen differently by the executive authorities.

Diana Dragutinović, the Minister of Finance, told Blic that there were two approaches to the tax reform and that the Government would decide when to start the reform and at what rate.

She said earlier that she would like the changes to be started in 2011 with the reduction of burden on salaries by one third and the increase in VAT by 3%. The Prime Minister pointed out yesterday that such solutions should be viewed in the context of changes over the next five to ten years, while Mladjan Dinkic, the Minister of Economy and Regional Development, said that "taxes will not be changed by the end of the mandate of this Government".

Dragutinović explains for Blic that the increase in VAT represents a maximalist approach to the tax reform and reveals the other possible variant.

- According to the minimalist approach to the reform, the rate of the tax on salaries would be lowered from 12 to 10%. This reform also includes amendments to the Law on Tax on Property. What would be changed is the inadequate approach to evaluation of the tax base that systematically underestimates value of the property - says the Minister.

She adds that this approach also implies amendments to the Law on Tax Procedure and Administration.