UNMIK/PR/905
Friday, 17 January 2003

EFC holds first meeting of the year

PRISTINA – SRSG Michael Steiner today told the first Economic and Fiscal Council meeting of this year that he had full understanding for the concerns of the people of Kosovo on the income tax issue.

“But I have no understanding for the ongoing blame game”, he stated. “The 2003 income tax rates were fully endorsed by the Government and it was a decision commonly carried by all members of the Economic and Fiscal Council.”
As a solution, SRSG suggested that the Government should come up with a comprehensive proposal along with the position of the IMF and the World Bank on this issue, to be taken up at an extraordinary session of the EFC next Friday.
SRSG also agreed with the Government to remove the two separate budget lines on Mitrovica from the 2003 budget. “This is a mistake and it will be rectified”, SRSG Michael Steiner said. “Mitrovica is one and the budget regulation will reflect that.”
On the merger of the CFA with the Ministry of Finance, SRSG Michael Steiner said that “the CFA had ceased to exist on 31 December.” The 137 staff members who were recruited and trained over the past two and half years, have been transferred to the Ministry of Finance and Economy. A few legal details will be finalized in the coming days.
The EFC also discussed the Budget Systems Law, a borrowing policy for Kosovo and a few other ongoing topics.