Statement of Ms. Biljana Šćekić, Deputy Minister, follows the Government’s Session

"... The proposed legislation, tax that now ranges from 0.08 to 0.8 percent, will range from 0.10 to one percent of the immovable market value. The special tax treatment will have secondary and facilities and buildings constructed against the law, as well as the agricultural land that is not cultivated or buildings that are not used in a prescribed manner, as well as hotel facilities located on a site that is declared as priority tourism. This means that if you have two apartments, and you’re using one, the other one will be taxed at a higher rate that can be increased to 100 per cent against the prescribed one. If, so to say, on a location where secondary facility or a structures are located that are not used for residential purposes, and a prescribed tax rate is half a percentage point, then it may be increased to one percent. Proposed amendments to the Law on Local Self - Government Financing which provides for the increase local revenues by about EUR 18 million and better fiscal discipline. Proposed solutions will supersede so-called small tax levy that did not have a large effects on municipal revenues and represented a barrier to business. This will relieve the private sector for about five million euros and the net effect of new measures will be EUR 12.5 million of additional revenues .... "