Loans and taxes are going bankrupt businesses

Loans and taxes are going bankrupt businesses

Economic Issues Musa Limani says of AktivPress that leadership of firms by non-professional people is causing many companies to fail in the Kosovar market.

“It is true that in Kosovo over a year there are over 7-8 thousand new firms registered, but at the same time they shut down over a thousand businesses. The main problem here is that businesses run non-professionals. So professional lack is one of the causes that leads to bankruptcy. And as a problem in itself is the economic situation, I would say that it is a serious situation that is normally reflected in every economic entity, “Limani said.

But the main problem for businesses in Kosovo, according to him, is the credit policies of commercial banks in the country.

As he says, they are stifling firms.

“Many fiscal policy instruments, such as VAT, taxation, and then credit policy, especially this are the ones that have a very negative impact on the business of business and, of course, foreign trade instruments. Here, I would point out the credit policy, which is one of the toughest policies in the region, even though Kosovo is one of the most underdeveloped countries in the region, and as it is known, the loans represent a major and complementary source for the business, “he said.

“No business can carry out its business without banking support, so the unfavorable conditions placed by commercial banks in Kosovo for businesses are one of the elements that affect the failure of businesses. Interest rates on loans are extremely high in terms of our business conditions, “he added.
As for this problem, according to Limani, very few governments have done so far, not including the actual one, because according to him, in the first days of government has made positive steps in favor of businesses.

“Governments so far can say that they have implemented fiscal policy instruments not so much in support of local businesses. Some of these instruments have adversely affected the development of businesses. Therefore, without institutional support from the Government, we can not expect any rapid or dynamic development of the economy, “says the economist.

On the other hand, for the deputy chairman of Kosovo Chamber of Commerce, Muhamet Ymeri is alarming the closure of a production business, with potential and tradition.

According to him, the problem in itself is the creation of fictitious businesses, with suspicious capital, which make chaos in the market.

Days ago, Prime Minister Ramush Haradinaj stressed another problem facing the companies, such as the lack of electricity.

Moreover, Haradinaj said that for one year businesses lose over 300 million euros from shortages.

On the other hand, Finance Minister Bedri Hamza has stated that there will be no increase in tax rates, even promising to businesses that no law will pass to the government and the Assembly without their inputs.

However, Limani said the task of the current Government is to make radical reforms in halting negative economic phenomena, turning the elements of fiscal credit and foreign trade policy into the function of business development.

However, the number of outsourced businesses in Kosovo is not accurate from what is presented by state institutions because business closure procedures oblige the company to perform all tax obligations. / AktivPress /