UNMIK/PR/1167
PRISTINA - Today the 18th Economic and Fiscal Council meeting was chaired by PDSRSG Charles Brayshaw. The meeting discussed issues related to the Kosovo Budget, funding for the Kosovo reconstruction fund and diverse fiscal measures of importance to the economic development in Kosovo.
On the usage of the 2003 surplus the Council supported the proposal to provide the urgently needed € 2.955m for securing KPC’s training needs with the understanding that the budget committee will look into the remaining requests.
Since the EFC recognized the urgency of the still outstanding funding needs for KEK the matter was also referred to the budget committee. “Electrical power is not a luxury, but a simple necessity”, stressed the PDSRSG, “We cannot act different than to provide this to the people.”
The members of the Council concurred that further consultations were needed on the macroeconomic projections for 2005-2007 budget development process.
The EFC recognized that the Kosovo Reconstruction Fund will require substantial financial support and agreed that the funding needs will need to be met as soon as the damage assessment is finalized. The Head of the Office of Returns and Communities Peggy Hicks appreciated the reconstruction work that is already being done, and the Government’s commitment to fully cover the costs for the fund. The PDSRSG praised the work of Minister of Culture Brajshori in leading the Government’s reconstruction effort.
Minister for Economy and Finance Ali Sadriu responded to UNMIK’s invitation to propose alterations to the fiscal policy by suggesting changes to the fiscal tariffs. The reduction of the customs tariff for capital and other intermediate goods from 10% to 0 % was supported, the technical details will have to be specified. The proposed tax and customs changes for supporting agricultural development will be discussed at the next EFC since all members requested more time for consultations on the working level.
The Council agreed to extend the exemption from customs duty on imported wheat and wheat seed, but not for wheat flour in order to stimulate the domestic milling.
In the light of the importance of Kosovo’s economic development the EFC members expressed their intention for more regular meetings.