No basic item escapes the increase in price, a solution with a VAT discount is required

There has been a drastic price increase in derivatives, oil, eggs, vegetables and meat. Apart from apples, none of the basic items listed by the Statistics Agency of Kosovo have remained unchanged in price. In order to mitigate this situation with prices, economist Erton Bega has said that the possibility of removing excise duty and VAT for some basic products should be considered.

For the same basket with basic food products, this year citizens are paying 14 euros more than a year ago. According to the report published by the Statistics Agency of Kosovo, in general, the prices of consumer products compared to last year have increased by 12.5 percent. For a liter of oil last year, citizens paid 1 euro and 55 cents, while now its price has gone up to 3 euros. Over 1 euro more expensive is also being paid for the set of eggs, chicken and beef. According to KAS, 3 euros and 82 cents were paid for one kilogram of peppers last month, or 2 euros and 60 cents more than last year. There was also such an increase in flour, bread, milk and sugar. Of the 24 basic food products listed in the "Harmonized Index of Consumer Prices" of KAS, only apples have been released for 5 cents, and all other products have become more expensive.

In order to mitigate this situation with prices, the economist Erton Bega has said that the possibility of removing excise duty and VAT for some basic products should be considered. He said that inflation has already increased budget revenues, an increase which he believes the state should return to help the citizens. Thus, Bega has emphasized that if the VAT is reduced, the prices of the products would automatically be reduced by the same amount.

"The removal of excise duty or VAT for a certain period or their reduction would be a proper step towards price stabilization, taking into consideration the extraordinary increase in prices that has occurred in recent months as a result of the conflict in Ukraine", he said to "Ekonomia Online".

There has also been an increase in fuel prices. According to KAS, in May of a year ago, a liter of gasoline cost 1 euro and 8 cents and a liter of diesel 1 euro and 5 cents. On Saturday, the price of gasoline rose to 1 euro and 88 cents per liter, while that of diesel to 1 euro and 86 cents. Economist Emanuel Bajra has said that the Government needs dynamism to control the rapid fluctuations in these prices, which he said are moving according to the interests of the oil companies.

"Some kind of opportunism is seen because the large price fluctuations and large price fluctuations are seen by some suppliers, both in Kosovo, as in the region and everywhere, as an opportunity for profitability. This is disturbing", said Bajra.

During this one-year period, the price of a meter of firewood has also increased by almost 10 euros. This increase in prices is considered enormous even by the opposition. Through a post on Facebook, the former prime minister of Kosovo, at the same time a deputy from the ranks of the Democratic League of Kosovo, Avdullah Hoti, has proposed the reduction of VAT from 18 to 8 percent for some products. He said that the law enables the Minister of Finance to expand the list of products with a reduced rate to include foodstuffs for human and animal consumption.

"It is incomprehensible why, after many months of enormous price increases, the Minister of Finance does not reduce the VAT from 18 percent to 8 percent for these goods as well, in order to reduce the burden on families," he said. Hottie.

The government has so far undertaken some measures that are only related to the control of the price of derivatives and not of other products. Finally, according to a draft decision obtained by KOHA, the executive intends to reduce the price of oil to 12 cents. This draft decision limits the profit per liter of derivatives. From two to three cents will be the profit per liter of diesel for wholesalers, while from six to ten cents will be the profit per liter for retailers. If the same goes into effect, the oilmen have warned that they will close the oil pumps. This draft was preceded by a decision of the Government dated March 1, which determined the maximum selling prices of wholesale and retail oil. The same expired on May 31.