UNMIK/PR/763
Monday, 24 June 2002

EFC discusses Gambling Activities in Kosovo

PRISTINA - The Economic and Fiscal Council (EFC), which met today for the second time, discussed the issue of unregulated gambling activities in Kosovo. It took positive note of SRSG Michael Steiner's decision to issue an administrative direction to regulate gambling activities in Kosovo. This will be a temporary solution until the Kosovo Assembly adopts a law on this subject.

SRSG Michael Steiner chaired the second meeting of the EFC. The Minister for Agriculture, Forestry and Rural Development, Goran Bogdanovic, who recently joined the government, also attended the meeting.

The EFC also discussed the draft legislation on Public Financial Management and Accountability, amendments to the VAT Regulation and the Excise Regulation and the progress report on coordination of economic legislation between PISG and UNMIK.

SRSG Michael Steiner congratulated the government on the draft legislation on Public Financial Management and Accountability. The legislation, presented by Minister for Finance and Economy Ali Sadriu, deals with the budget systems, the roles, authority and responsibilities of different parties in budget development, the legal schedule of events in the budget process from the initial request for draft budget plans from agencies and municipalities to the actual publication and dissemination of the budget document.

The EFC agreed that DSRSG Andy Bearpark and Mr. Sadriu would liaise closely in areas where issues impinged on SRSG's reserved powers. A working group will be involved if the two cannot reach an agreement.

The Council also agreed on the two amendments to the VAT Regulation and the Excise Regulation, which was proposed by the CFA. The main proposal in the amendment to the draft VAT regulation is to lower the VAT threshold from an annual of € 100,000 to € 50,000. The excise tax on VCR, mobile phones, TV and satellite dish will be abolished, since the revenue from these items is insignificant. The excise tax on petroleum products will be changed on 1 July 2002, based on a review of prices in the neighboring countries. The new prices would be gasoline 30 cents per liter of gasoline and 27.5 cents per liter for diesel, kerosene and other petroleum products.

D/DSRSG for the EU Pillar Juergen Voss gave the progress report on coordination of economic legislation between PISG and UNMIK.