Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
In 2010, Kosovo for the first time entered into a financial arrangement with the IMF. The
IMF granted the first ‘Stand-By-Arrangement’ loan to Kosovo at the amount of euro 108.9
million (SDR 92.6 million), which is equivalent to 157 percent of the Kosovo’s quota in the
IMF. 5 This arrangement was aimed at addressing the budgetary needs, and, according to
the agreement, the IMF is expected to distribute the granted loan to Kosovo budget in six
installments, throughout a period of 18 months. During 2010, Kosovo withdrew the first
installment amounting at euro 22.1 million, whereas the issuance of the remaining five
installments is subject to the quarterly reviews of the program implementation. According
to the program, the Government of Kosovo is expected to comply with the IMF
recommendations, which are mainly related to the rationalization of budget expenditures
and the enhancement of efficiency in the public administration. Following the approval of
the program with the IMF, Kosovo is expected to receive further budget donations and
loans from other international institutions.
3.2.1. Budget Revenues
Budget revenues in 2010 amounted at euro 1.17 billion, or 2.8 percent higher compared to
year 2009. The budget revenues to GDP ratio in 2010 stood at 27.9 percent, which
represents a lower ratio compared to the average for the countries in the region in year
2009 (34.2 percent).
Border revenues continue to dominate the structure of budget revenues, comprising 59.3
percent of total budget revenues in 2010. Net revenues collected from border taxes reached
at euro 699.4 million euro, recording an annual growth of 10.3 percent (5 percent in 2009).
The increase of the volume of the border revenues was also driven by the increase of
imports, which in 2010 grew by 10.8 percent (0.4 percent in 2009). Within the border taxes,
the border VAT represents the largest category (30.7 percent), amounting at euro 361.3
million. Excise revenues (including tobacco excise) represent another important category of
border revenues, which amounted at euro 232.4 million or 19.7 percent of total border
revenues in 2010. Compared to 2009, the excise revenues recorded an annual growth of 12.4
percent.
Net revenues from local taxes in 2010 amounted at euro 194.2 million (annual growth of 6.9
percent). Within the revenues from local taxes, the largest share is represented by domestic
VAT revenues (48.9 percent of local taxes revenues), which in 2010 reached at euro 95
million. Compared to year 2009, the domestic VAT revenues recorded an annual growth of
25.3 percent. One of the factors that may have contributed to the better collection of
domestic taxes is also the implementation of the project on the installation of fiscal
cashiers. Fiscal cashiers started to be installed by enterprises in Kosovo for the first time in
in March 2010. The number of fiscal cashiers that have been installed during year 2010 has
reached at 12,000. Taxes on corporate revenues represent another important category of
domestic revenues, composing 26.7 percent of total domestic revenues. Revenues collected
through this category of taxes reached the amount of euro 51.9 million in 2010, marking a
decline of 6.3 percent. Revenues from personal income taxes, in year 2010, reached at euro
44.2 million (22.8 percent of total domestic revenues), recording an annual growth of 12.8
percent. Another category of domestic taxes, that comprises a lower share of total revenues
from domestic taxes (2.2 percent), consists of taxes on individual business, which in 2010
generated euro 25.5 million and marked an annual growth of 23.9 percent. In 2010, the own
source revenues amounted at euro 100.5 million (8.5 percent of total budget revenues),
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5 See Annual Report 2009, Box 1, page 33.