Jordanov: Not all municipalities can receive the same VAT refund, and they do not refund the money to the citizens

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A major analysis of fiscal and administrative decentralization by the central government is needed, believes the mayor of Shtip municipality, Ivan Jordanov, who says that the majority of his colleagues from larger municipalities share this view. In an interview with MIA, Jordanov notes that in terms of fiscal decentralization, it is not possible for all municipalities to receive the same percentage of value added tax (VAT) refund, and for the same municipalities not to refund the money back to the citizens.

“Municipalities must be stimulated and motivated. If they return a larger percentage of the operating budget in the form of capital investments, then they should have a greater right to a refund of the value added tax, or if they increase the percentage of collection of the primary and basic income they have, the percentage should depend on this criterion of decentralization”, said Jordanov.

 

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