The newly proposed Fiscal Strategy is poised to be a significant economic reform, emphasizing not only fiscal stability but also prioritizing the welfare of employees and the needs of the business sector. This was the consensus following recent discussions between government officials and business leaders.
Prime Minister Milojko Spajić, Finance Minister Novica Vuković, and Minister of Labor, Employment, and Social Dialogue Naida Nišić held separate meetings with representatives from the Union of Employers and the Chamber of Commerce to review the draft Fiscal Strategy for 2024–2027.
During a meeting of the expanded Board of Directors of the Union of Employers, which saw attendance from over 80 company representatives, it was emphasized that the new Fiscal Strategy is essential and will boost efforts to attract new investors.
“Since 2021, the lack of a Fiscal Strategy has resulted in unpredictability and a lack of reliability from the state as a partner to the business sector. Businesses operate on a medium to long-term basis and this strategy provides investors with a baseline scenario for the next three years,” Prime Minister Spajić noted.
Members of the Union of Employers contributed to refining the document, drawing from their extensive experience to suggest improvements for the business environment and the removal of obstacles.
“As a business leader with 32 years of experience, I believe this is the first substantial economic reform to prioritize employee conditions, business interests and respect for social dialogue in law-making. It focuses on long-term development rather than immediate interests and election promises,” said Slobodan Mikavica, President of the Union of Employers.
The draft also addresses the proposed introduction of a middle VAT rate and its potential impact on the hospitality sector, including hotels.
“An in-depth analysis has been conducted to ensure that this VAT rate does not harm the competitiveness of the tourism industry. It’s important to note that the overall tax burden on businesses remains lower compared to regional counterparts,” explained Branko Krvavac, Chief of Staff to the Prime Minister.
At a subsequent meeting with the Chamber of Commerce, which also included around 80 business representatives, Chairwoman Nina Drakić highlighted the importance of continuous dialogue between the government and businesses.
Drakić mentioned that businesses had submitted feedback on several issues that could affect the business environment and operations.
“Overall, policy moves towards reducing labor costs are positive, but we need to carefully assess the impact of increasing the minimum wage. There are also calls to reconsider the proposed excise tax on still wines, given its potential effects on that industry,” Drakić added.
Prime Minister Spajić assured that solutions for small wineries would be considered and that all feedback would be thoroughly reviewed to finalize the Fiscal Strategy.
Finance Minister Novica Vuković emphasized that the consultations with businesses had been highly productive and that many valuable proposals had been received.
“This is the core purpose of the public consultation, which will continue until August 7. We are committed to incorporating feasible suggestions and creating a comprehensive document that has been awaited for years,” Vuković said.
The discussions also underscored the importance of enhanced oversight to reduce the gray economy and unfair competition, which is expected to positively impact state revenues and encourage compliant businesses to invest and expand their workforce.
