It is increasingly certain that most of the provisions of the Law on Personal Income, which should begin to be applied from January 1, 2023, will not see the light of day. The provision according to which personal income over MKD 90.000 should be taxed at a rate of 18 percent, according to the Minister of Finance Fatmir Besimi it can be revised, postponed, or there can be no progressive tax at all.

At a press briefing, Minister Besimi presented the tax reform concept made by the Ministry, which has been put up for public debate and which should bring in an additional 54 million euros next year.

However, in the concept, as Besimi said, the question of the progressive tax and the contributions for those who work on a contract is completely open and the proposals should come from a joint discussion with the representatives of the Government, the business community and the academic public.

- There are various models in terms of fair taxation and probably the Personal Income Tax Law will undergo changes - Besimi said and informed that in October they will come out with conclusions from the debate.

He emphasized that there are remarks from both the IMF and the World Bank about the gray economy and that it is also produced through various contracts, which is why there should be pension and social insurance contributions for them as well. However, when asked by "Sloboden Pechat" whether it is being considered that contributions should only be paid by those who earn only from part-time work, or also those who, in addition to regular employment, have additional part-time work, Besimi said that it was a dilemma for him as well.

- It is a dilemma for me as well. I ask myself these questions as you do. Therefore, the Ministry of Finance did not come up with a specific proposal and we expect it to come out of the broad discussion - said Besimi.

It is not yet known whether there will be different tax rates for income from labor and from capital. If the provisions of January 1, which are in the current legal solution, would be applied, there would be a tax of 15 percent for income from rentals, industrial property, for capital gains.

The ministry tabled the proposal from January 1 to tax the interest on fixed assets in banks.

- If someone has savings of 100.000 denars with an interest rate of 2 percent, his interest income will be 2.000 denars, and the tax of 10 percent means only 200 denars - said Besimi.

Bessimi said that there will be a debate on increasing the threshold at which pension and health insurance contributions are paid. Now regardless of salary, they are paid at most up to 16 average salaries. Taxation of non-financial benefits from management contracts will also be discussed.