According to the latest data, the total tax debt amounts to 655 million EUR, of which 398 million relates to the net principal debt, and the remaining 257 million is interest, as reported by the Acting Director of the Tax Administration (TA), Sava Laketić.
He stated that the Tax Administration’s Operational Sector regularly analyzes the debt, writes off overdue debts where absolute statute of limitations has occurred, but also carries out activities to avoid future expirations of debt.
“By applying the Law on Interest Waiver, taxpayers will have the opportunity to have their interest waived if they pay the principal debt, which will lead to a reduction in the total tax debt,” said Laketić in an interview with Mina-business news agency.
Furthermore, one of the plans for reducing tax debt that the Tax Administration will implement in the coming period is the assessment and sale of assets from taxpayers who do not have liquid assets.
When asked about the impact of the Law on Interest Waiver for overdue tax liabilities, which started applying on January 1st of this year, Laketić explained that the law was adopted to more effectively manage tax debt and relieve tax accounting from interest in cases of principal debt repayment.
“This law allows for the waiver of calculated interest for taxpayers who submit all tax returns due by December 31st of the previous year and who pay the entire principal debt within 60 days from the start of the law’s application. We have already had discussions with a number of taxpayers and expect that we will be able to resolve at least part of the long-standing tax debt through this legal solution,” Laketić emphasized.
He reported that by December 27th of the previous year, the Tax Administration had generated 1.59 billion EUR in gross revenues, which is 206.4 million EUR or 15 percent more compared to the same period in 2023. The collection plan was exceeded by 65.9 million EUR or 4.3 percent.
“Revenue from Value Added Tax amounted to 478.5 million EUR, which is 79 million EUR or 19.8 percent more compared to the same period in 2023,” said Laketić.
He added that the collection of corporate income tax reached 212.7 million EUR, surpassing the amount from 2023 by 61.3 million EUR or 40.5 percent.
“Social security contributions amounted to 580 million EUR, which is 23.6 million EUR or 4.23 percent more than the revenue collected in 2023,” Laketić explained.
According to him, the higher collection of all tax forms is the result of increased fiscal discipline, which includes encouraging voluntary compliance with tax regulations, applying enforcement measures, and sanctioning illegal business practices.
“Significant influence on the increased revenue collection came from the intensified control of tax inspectors, who achieved notable results during the summer tourist season,” Laketić assessed.
Regarding the ongoing reform of tax processes and digitalization of business processes to improve openness to the economy and citizens, Laketić stated that the tax administration reform project is an important step toward improving the tax system and more efficient tax collection, alongside improving the business climate and reducing the shadow economy.
“The project is in the phase of further improving digital processes, and a key activity of the Tax Administration is working on an integrated system that will replace all outdated systems currently in use. This means that every business process between citizens, businesses, and the Tax Administration will be digitized, taxpayer applications and reports will be processed more quickly, which will reduce bureaucratic barriers and increase tax revenue collection,” Laketić explained.
According to him, one of the next steps is the formation of a new Tax Administration portal that will include an e-box for citizens and businesses, through which taxpayers will be able to submit all tax returns, register companies and employees, as well as obtain certificates.
Speaking about the Tax Administration’s projects for this year, Laketić said that all activities will be focused on digitalization, modernization, and strengthening the Tax Administration in terms of human resources, expanding the base of taxpayers, and reducing tax debt.
“Many activities in these areas were initiated and implemented last year. Work on the integrated system and digitalization of business processes continues, and plans include organizing numerous educational campaigns to raise awareness about the importance of complying with tax obligations and the consequences for those operating in the shadow economy. The Asset Sale Department will work on reducing tax debt by assessing and selling assets from taxpayers who lack liquid funds,” said Laketić.
He added that a special department focused on disproportionate assets and special taxes is planned. This new sector will serve as a precursor to the Financial Police.
“We have received support from international partners in the form of technical and legislative assistance to quickly establish the desired model,” concluded Laketić.
