UN radio in Kosovo

Car exsize reduced

By Birol Urcan

Hello and welcome from the studios of the United Nations in Kosovo, I’m …

The tax-system-reforms for personal vehicle import to Kosovo began last month and according to officials, the import of vehicles older than 8 years will be completely forbidden. At the same time, for all vehicles younger than 8 year there will be no more Total tax currently set at 20 %. This is a tax paid on –the entire value of the car and all other taxes and related duties

Gani Asllani, Counselor for the Ministry of Economy and Finance, explains the advantages that come from these reforms.

Actuallity

“Without the excise of 20% citizens will have more possibility, starting from 20 of March, to buy new cars, which will indirectly have an influence on creation of the new generation of the cars in Kosova market.”

According to Asllani, a younger generation of cars means: better road safety, less damage to the environment, and for the driver less visits to the mechanic.

The reform drops the taxes on vehicle import significantly. In other words, Total tax is no longer paid, while linear excise of 500 Euro; Customs import tax of 10% and VAT of 15 % remains in force.

Practically, it means that if you buy a car valued 5.000 Euro, you will have to pay 500 euro of linear excise, 500 euro customs tax, and 900 euro VAT. So, the total value of the taxes for this car will be 1.900 euro.

Bashkimi Arifi from UNMIK customs service explains the procedure a Kosovo citizen has to follow if he wants to import a vehicle.

Actuality

“If the Kosovo citizen wants to import a car he has to come to one of UNMIK customs offices in territory of Kosovo, with original papers of the car. If the car is a new one, he has to have and the sales contract and receipt”

But, Arifi says, this is not the whole story. If new cars are going to be cheaper for the buyer, it means that less taxes is going to be collected, so the gap in the Kosovo Consolidated Budget caused by this consumer saving has to be filled somehow.

The Kosovo Government and UNMIK decided to fill the gap indirectly by, as they say, by protecting the health of Kosovo citizens. From March 1st the government has raised the excise on cigarettes from 10 to 17 euros per kilogram, a pack of cigarettes in Kosovo that earlier could be bought for 70 Euro cents, today costs 1 euro.

In addition to cigarettes, excise was raised also on other luxury products like coffee, mineral water, beer, wine, oil products and some others, in efforts to meet the KCB, shortfall.

With the savings on the purchase of a car we can expect to see, more new cars on the streets of Kosovo.

This was all for today’s edition of UN Radio program, thanks for listening us and stay tuned.