Wednesday, 19 December 2018 | News today: 16

Nikoloski: New tax on deposits spells danger for the banking sector

aleksandar-nikoloski (1)

VMRO-DPMNE Vice-President Aleksandar Nikoloski warned of dramatic effects from the latest round of tax hikes and bank red tape announced by the Zaev Government. Nikoloski was especially critical of the announcement of a 15 percent tax on bank deposits, that is being introduced in the name of fighting inequality, which he said could cripple smaller banks.

– Imagine the negative effect among savers once this tax will be in effect. Interest rates on deposits, especially on hard currency deposits, are already at rock bottom, below 1 percent. This doesn’t even cover the annual rate of inflation. Add to this the new, 15 percent tax on deposits, as well as the unstable political environment, and we can expect a large portion of the citizens to withdraw their deposits from the banks. This could be a serious blow, especially to the smaller banks, said Nikoloski, adding that as soon as VMRO-DPMNE takes over from SDSM, the tax increases will be revoked.

In an editorial with “Nezavisen” daily, Nikoloski warned that Government economic policies have deteriorated fiscal discipline and increased tax evasion, especially after the new, higher taxes were announced.

– The economy won’t pick up merely because Zaev is renaming our country into Nothern. The economy is in a downward spiral, fiscal discipline is eroding, and, in response, Zaev and Finance Minister Dragan Tevdovski are taking the seemingly easiest, but actually worst move, which is to increase taxes, says Nikoloski.