UNMIK
United Nations Mission in Kosovo

IAC Discusses Draft Regulations on Taxes and Education

UNMIK/PR/682

Acting SRSG Charles Brayshaw chaired a regular session of the Interim Administrative Council today, which will continue to meet to discuss pending regulations and other issues until the transfer of authority to the Provisional Self-Government, once formed.

Mr. Brayshaw opened the meeting by reiterating his deep distress over the recent death of Kosovo Assembly member Ismael Hajdaraj, as well as his pledge that UNMIK police are pursuing vigorously the investigation into the assassination. The acting SRSG urged local leaders to appeal to the people of Kosovo to help identify witnesses and to get relevant information to the police.

Mr. Brayshaw also expressed his condolences over the recent death of Serb National Council member Dusan Ristic.

He went on to inform the IAC of the imminent appointment of a new SRSG, noting that the SRSG-designate Michael Steiner was looking forward to addressing the pressing issues facing Kosovo and the mission.

Mr. Brayshaw then described his recent visit to New York and Washington, D.C. where officials stressed to him their interest in seeing the institutions of self-government established as quickly as possible.

He briefed the IAC on yesterday's meeting in Belgrade of the High Level Working Group which he described as positive and constructive in terms of laying out the priorities for the work ahead on issues of mutual concern identified by the Common Document of 5 November 2001.

To a journalist's question after the IAC meeting on media reports of possible Serb police activities in Kosovo, Mr. Brayshaw responded that the issue was not discussed by the High Level Working Group, but that a protocol on exchanging information between police forces is under consideration. By this protocol, UNMIK Police and neighboring police services would cooperate on sharing information in order to combat drug and human trafficking, money laundering, prostitution and other forms of organized crime.
"But this does not involve actions of the police from Serbia proper in Kosovo," Mr. Brayshaw said. "UNMIK has full and undivided responsibility for law enforcement in Kosovo and we will not share that with anyone but KFOR."

The bulk of today's meeting was devoted to briefings on four pending regulations. Two draft regulations on education -one on primary and secondary education and one on higher education-were drafted in November. However, at the request of IAC members, UNMIK put off action on regulations in areas which are to be transferred to the new Provisional Self Government.

As the government has not yet been formed, UNMIK's Civil Administration Pillar favors promulgation of the education regulations soon by the SRSG in order to give Kosovo's education system a legal basis. This would help eliminate parallel systems and would also allow the creation of new institutions in order to ensure all Kosovo's communities have opportunities to pursue higher education in Kosovo.

Mr. Brayshaw concluded that he would keep the issue "under advisement" for the time being.

The other draft regulations discussed-on personal income taxes (on wages) and on business profit taxes, fall under the SRSG's reserved powers and will be promulgated shortly.

Wages of between 51 and 250 euro monthly will be subject to a 10 percent tax, while wages of more than 250 euro monthly will be taxed at a rate of 20 percent. Tax revenues will go into the Kosovo Consolidated Budget.

The regulation on profit taxes, by taking into account the costs of inputs into a business, should make investment in Kosovo more attractive and will bring Kosovo's economic practices more in line with the rest of Europe, said CFA director Tony Preston-Stanley.

In his regular report on security, KFOR Commander Gen. Marcel Valentin drew special attention to the murder of Assembly member Hajdaraj. General Valentin also reported on continuing weapons search operations, conducted by KFOR throughout Kosovo, in close cooperation with UNMIK Police.