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American Chamber of Commerce in Kosovo

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  • AmCham reiterates its position that the Draft Law on Salaries results in high budgetary costs
 

AmCham reiterates its position that the Draft Law on Salaries results in high budgetary costs

Thursday, 30 August 2018 / Published in AmCham, Press Releases

AmCham reiterates its position that the Draft Law on Salaries results in high budgetary costs

Prishtinë, August 30, 2018 – The American Chamber of Commerce in Kosovo reiterates its position that the Draft Law on Salaries will result in extensive costs in the country’s budget, therefore risking budgetary stability.

AmCham strongly believes that approving the Draft Law in its current form would result in extensive budgetary implications thus reducing capital investments which are crucial in empowering the private sector and economic development.

Moreover, AmCham considers that this draft law would further increase the payment gap between the private and public sector, considering that the private sector enterprises cannot follow the public institutions’ pace on increasing salaries during the recent years.

Therefore, aiming on maintaining the budgetary stability through a more careful spending of the public money, AmCham urges the Ministry of Public Administration and the Government of Kosovo to consider the possible implications arising from this draft law since local institutions are obliged to ensure that the budgetary stability is not endangered in any circumstances.

A potential deficit growth would increase tax rates for businesses in the country and would decrease prospects on attracting foreign investors but also result in higher levels of informal economy in Kosovo during a period of time when more efforts are required in fighting it.

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