Macedonian government takes ten measures to head off economic crisis

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  • Risto the Great
    Senior Member
    • Sep 2008
    • 15658

    Macedonian government takes ten measures to head off economic crisis



    In a bid to protect the economy from the global financial crisis, Macedonia's government has announced ten new measures costing 330m euros in all.

    Following a model used in Estonia, authorities plan to charge capital gains taxes on dividends only. Meanwhile, it will reduce tariffs on materials imported by Macedonian industries.

    It also will write off companies' unpaid health insurance contributions within four years if they resume those contributions within that period. The government will apply tax forgiveness to penalty interest on corporations' unpaid income tax, capital gains tax, value-added tax, property taxes and pension contributions, according to Reuters.

    Such debt is payable in installments, Prime Minister Nikola Gruevski has said. Skopje is imposing a three-year freeze on arrears for companies that have fallen behind in pension contributions.

    To help out farmers, the government is cutting their taxes -- and eliminating them altogether for those who earn less than 5,000 euros a year. Other citizens and enterprises will see reductions of income and property taxes.

    "Macedonia is not in recession, but keeping in mind that our biggest export recipients are in recession, we took those preventive steps to alleviate a possible crisis. We are not expecting these measures to cause a serious deficit because they are balanced and well thought out," said Gruevski.

    The business community has generally welcomed the economic package. "Some of the measures will serve as a stimulus for further development," said Mirce Cerkezi of the Association of Chambers of Commerce of Macedonia.

    But law professor Vanco Uzunov considers the measures inadequate. "The world crisis began in the financial sector first, and later it overflowed into the real economy. In our state, it began in the opposite manner. Because of that, we should think about preventive measures in [the financial sector] too," said Uzunov.

    Steel and textiles are the worst-affected sectors in Macedonia. According to the Statistics Bureau, in October, steel shed 3,200 workers. Among them were employees of the Feni ferro-nickel plant and the Silmak ferro-alloy mill. Miners are also suffering from a downturn in demand.

    A similar situation prevails in the textile industry, where managers have been forcing employees to take unpaid leave and have been temporarily shutting down factories due to lack of business.
    Risto the Great
    MACEDONIA:ANHEDONIA
    "Holding my breath for the revolution."

    Hey, I wrote a bestseller. Check it out: www.ren-shen.com
  • Venom
    Member
    • Sep 2008
    • 445

    #2
    Simple, logical safeguards like these are very smart in these times. Good work Gruevski, I reckon.
    S m r t - i l i - S l o b o d a

    Comment

    • Risto the Great
      Senior Member
      • Sep 2008
      • 15658

      #3
      Pretty sensible I suppose.
      authorities plan to charge capital gains taxes on dividends only
      This makes no sense whatsoever and I do not think the author even understood what she wrote!
      Risto the Great
      MACEDONIA:ANHEDONIA
      "Holding my breath for the revolution."

      Hey, I wrote a bestseller. Check it out: www.ren-shen.com

      Comment

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