4th January 2022, Skopje – On Tuesday, Minister of Finance, Fatmir Besimi paid working visit to the Public Revenue Office, meeting the PRO Director Sanja Lukarevska and the management thereof, by reviewing the developments throughout 2021, thereby determining the activities and the challenges in the upcoming 2022.
They both agreed that the cooperation between MoF and PRO is excellent and intensive, which will be enhanced further on. One of the ways for further action taken by the teams from these institutions, is to prepare a plan of activities with precisely defined tasks and deadlines to be met by both parties.
,, Ministry of Finances works, via the Tax System Reform Strategy, on five main priorities pertaining to greater fairness as regards taxation, as well as increased efficiency and effectiveness of the tax system to the end of improved revenue collection, increased tax transparency, better quality of services, as well as introduction of environmental taxation, Minister of Finance, Fatmir Besimi pointed out.
He went on that the Action Plan as per the Strategy covering 2022, will primarily include activities and measures geared towards increased efficiency and effectiveness of the tax system, streamlined tax procedures, better collection of public revenues, as well as greater digitalization of tax procedures.
“We are also working on reducing the informal economy through the 2021-2022 Action Plan on Eradication of Informal Economy, offering more comprehensive approach, covering plenty of measures and involving many institutions therein. Priority goals are improvement of the process of assessing, monitoring and detection of the grey economy, stimulating activities for formalization of the grey economy, raising the awareness of the informal economy and strengthening the tax morale, efficient inspection services and efficient system for imposing fines, improving the legislation and measures taken by the Customs Administration. Public Revenue Office also plays a key role in realizing the respective measures, such as the introduction of Integrated Tax Information System, by which PRO will provide conditions for e-communication with taxpayers, as well as a putting a single platform for e-invoicing in place, all to the end of simplifying the tax controls and monitoring the generated turnover.
Minister underlined that Ministry of Finance will continue to pursue policies and undertake measures aimed at higher economic growth and understandably predictable economic environment, being of relevance for the operations of legal entities.
Director Sanja Lukarevska pointed out that PRO, in the past year, together with the Ministry of Finance, worked on implementing the 2021-2025 Tax System Reform Strategy, the Action Plan on Eradication of Informal Economy, the legal amendments to the Law on Added Tax value, the Law on Tax Procedure and the Law on the Public Revenue Office, as well as all legal regulations that are within the scope of work of these institutions.
The Director also presented the activities PRO realized last year, pertaining to collected taxes, social contributions, VAT refund to companies and usage of the measure subsidizing the mandatory social insurance contributions for the purpose of wage increase.
In 2021, revenue collection amounted to Denar 89.6 billion, being higher by 17.89% compared to 2020, while being higher by 8.87% when compared to 2019. Social contribution collection amounted to Denar 84.5 billion in 2021, being higher by 5.75% compared to 2020 and higher by 15.86% compared to 2019.
In 2021, VAT refund to the companies amounted to total of Denar 31.2 billion. As for companies, this refunded amount was by 22.39% higher compared to 2020, and by 20.45% higher compared to 2019.
As for the measure subsidizing the mandatory social insurance contributions for the purpose of wage increase, which application started in October 2019, the Director underlined that in 2019, covering the period October – December, 10 500 companies on average used this measure, whereby 57 000 employed people on average, had their wage increased, with the average amount of subsidies amounting to Denar 85.6 million per month in this period.
In 2020, 23 900 companies on average used the measure subsidizing the contributions and 120 000 employed people on average, had their wage increased. In 2020, average amount of subsidies amounted to Denar 183.8 million per month. In 2021, (in the period January – October) 24 400 companies on average used this measure 134 000 employed people on average, had their wage increased. Average amount of subsidies amounted to Denar 229.6 million per month.