UNMIK/PR/923
PRISTINA – SRSG Michael Steiner today chaired the ninth ordinary session of the Economic and Fiscal Council. Following discussions in the Council the SRSG announced his decision to transfer the administrative and operational responsibilities for the Tax Administration to the Provisional Government.
In order to transfer the responsibility for operations at Pristina Airport from KFOR to civilian authorities the EFC noted the need to set up a Civil Aviation Regulatory Organisation (CARO) and to comply with ICAO requirements. The CARO will be funded by an increase in Passenger Fees already being charged, ensuring that users of the airport pay for the costs. The charge will rise from Euro 12.33 to Euro 15, an increase of Euro 2.67 from today’s fee.
The EFC noted the importance of resolving the issue of the implementation of the Free Trade Agreement with FYROM. The Council agreed to address this issue directly with the Prime Minister of FYROM as well as to discuss it with FYROM Customs Service in a meeting in early March 2003 and to report back at the next EFC.
The Council further agreed on the Deferral of Extension of the Pension contribution, from 1 March to 1 August 2003. The implementation of the planned extension of the Pension contribution to include small employers and their employees, will therefore be deferred by five months. The Kosovo Pension Savings Trust had recommended the five-month delay, following the changes requiring to be implemented by the Tax Administration. The changes were necessary after the decision last month to change the Income Tax rates and the need to finish implementing an accounting system able to deal with the much larger number of contributors and transactions involved in the extension.
The Minister for Finance and Economy, Ali Sadriu, presented a report on the overall outcome for the Budget 2002. It was decided that the proposal would be given careful consideration and be reviewed at the next meeting on 18 March 2003.
Other matters discussed at today’s Economic and Fiscal Council included the Public Financial Management and Accountability Law which was considered by the Assembly in late December. The EFC noted advice from the IMF recommending some changes to the Law and agreed that there should be further discussions.