13th February 2025, Skopje – Refund of funds the companies paid on the basis of solidarity tax, is a severe issue and a major blow on the Budget. In near future, we will meet with the companies’ representatives to discuss the manner of servicing the liabilities, as well as explore the option of their offsetting.
This was announced by Minister of Finance, Gordana Dimitreska-Kochoska, in her guest appearance on Alpha TV Channel, thereby stating that at the time of adopting this Law they, as an opposition, disagreed therewith since, as she put it, it was poorly drafted and did not align with the actions of Europe at that time.
“This is a critical issue and a major blow on the Budget. I will remind you of the comments I made during the adoption of the Law in my capacity as Deputy Chair, as well as on behalf of our MPs. Additionally, upon being invited to debate the Law, which has already been under preparation, we sent an official letter to the Ministry of Finance, elaborating our arguments against it. The reason behind this was that the Law covered all companies, rather than just those it was intended for in Europe, with the companies established in 2022 exclusively for electricity generation and trading, being exempt from paying this tax. Additionally, the tax assessment was linked to profits, thereby stressing that profit does not always equate to liquidity. However, in my current capacity as a Minister, I have my concerns. The list of companies reveals the state-owned companies having paid solidarity tax. For example, JSC Power Plants of North Macedonia (AD ESM) being provided with aid of EUR 300 million to stay afloat, paid solidarity tax, as was the case with JSC Water Economy and National Forests Public Enterprise, being transferred budget funds to cover the wage payment, which is an absurd at its best, Minister said.
Regarding the funds under the Hungarian Loan Facility intended for the companies, she pointed out that agreements are already being signed between the Development Bank and the commercial banks, with the banks confirming the interest the companies demonstrated therein. She stressed that she expects quicker approval and transfer of the funds, thereby announcing that meetings with the business community will take place starting next week.
Minister noted that the government measures in view of inflation are appropriate, generating short-term effects, however, inflation is to be tackled in the long run, which requires legislative action so as to reduce the retail prices through market-driven economic processes.
“Inflation is currently at the projected level, and we anticipate full stabilization by 2025, which will unquestionably depend on both the international developments and the policy actions our Government is to take.” “If the government manages spending prudently, prioritizing capital investments or cutting or incurring no unproductive expenditures, stabilization will understandably follow.” “The uncontrolled spending, my predecessor was responsible for, is yet another factor for the fueled inflation nowadays,” Minister said.
She also touched upon the operations of the institutions under the competence of the Ministry of Finance, highlighting the notable results they accomplished in their operations, in particular considering that they established communication and exchanged information on a daily basis rather quickly, without thereby withholding any information. She pointed out that the Financial Police Office has filed criminal charges, worth around EUR 15 million, and that new charges related to Thermal Power Plant Bitola, will be filed by Friday. She also mentioned that the Customs Administration has filed a criminal charge for the first time, whereby the Public Revenue Office is still dealing with the pre-existing challenges.
