In an opinion for NIN weekly on May 9, Taxation Committee President Dragan Draca drew attention to the most significant issues in taxation, including insufficient transparency in lawmaking process, needed modernization of Tax Administration and inconsistent law implementation.
He also used this opportunity to tackle the recent issue of compensation of transport costs for employees, which is the example of the problems resulting from inconsistent law implementation. “Business community was consistently outlining the need for the Government to guarantee that all the proposals for the changes and amendments of the tax legislation would be timely published and reviewed in consultations with the business community and other stakeholders”, he said. Dragan Draca added that the key stakeholders including IMF and the EU share such view. On a positive note he said that consultations were recently organized for some pieces of legislation, including VAT Law and Property Law. When it comes to the grey economy, he welcomed the results achieved by the Tax Administration, but also outlined the need for its improvement and modernization.Business community still faces the issue of inconsistent interpretation and implementation of tax laws by various organizational units of TA, Taxation Committee President said. While outlining the introduction of the binding opinions of the Finance Ministry as the step in right direction, he said there is the need to continue engagement in view of resolution of this issue. Dragan Draca gave as an example the problem of the new obligation to justify the compensation of transport costs of employees, stemming from the new Opinion by the Ministry. He provided info on the issue, tackled recently in the letter to the Finance Ministry. His article can be downloaded here below.