Impact of tax regime on four manufacturing sectors
The purpose of this policy assessment is to analyze the effect of the tax regime on Kosovo’s manufacturing sector during the last decade. More specifically, by focusing on a set of manufacturing industries which were deemed by the Kosovo authorities as having a strategic importance, this study will attempt to first of all determine – based on the available empirical data - whether the tax regime that was in place over the last couple of years has had a negative, neutral or positive effect on the growth of the manufacturing sector.
The study attempts to retroactively assess the impact of the tax rates that are applicable in Kosovo and the administration of the tax system on the investment climate for the manufacturing sector. It does so by looking at available indicators from a mixture of sources, such as primary data from the Kosovo Tax Administration and the Kosovo Customs, business surveys, other secondary sources and interviews with relevant stakeholders.