Author(s)

Artan Haziri¹, Blerona Shala^2*

¹Pjeter Budi College, Pristina, Kosovo.
²Faculty of Economics, University of Pristina “Hasan Pristina”, Pristina, Kosovo.

To achieve political prosperity and stability, national governments aim to achieve economic equilibrium. The government uses various instruments to stimulate economic growth, reduce unemployment and achieve macroeconomic objectives. In the context of the slow economic growth of recent years and fiscal pressures, Kosovo faces the complex challenge of economic development. Unemployment continues to be at a high rate. This is best shown by the large application for work visas in western countries, especially in Germany and Croatia. The demand for labor is still very low and creating an environment that will favor the creation of sustainable jobs is a challenging task that requires multidimensional reforms in the economy. However, this paper addresses the issue of the impact of fiscal policy on debt forgiveness to businesses, the impact of changing the VAT rate, the eventual increase of the minimum wage and its impact on businesses, the tax imposed on Serbian products and its impact on our products. The purpose of this paper is to show that fiscal policies have a key role in the development of a business as the eventual change of fiscal policies, i.e. profit tax, value added tax, taxes, wages or debt forgiveness directly affects the business activity.

Fiscal Policy, Debt Forgiveness, VAT Change, Minimum Wage, Tax on Serbian Products

Haziri, A. and Shala, B. (2021) The Impact of VAT and the Minimum Wage on the Economy of Kosovo. Open Access Library Journal, 8, 1-12. doi: 10.4236/oalib.1107701.