DUŠAN LALIĆ President of the FIC Financial Services Committee (Generali Osiguranje Srbija a.d.o.) COMMITMENT YIELDS RESULTS DRAGAN PENEZIĆ Co-President of the FIC Anti-Illicit Trade & Food Committee (British American Tobacco SEE d.o.o

Commitment

Yields Results

DRAGAN PENEZIĆ

Co-President of the FIC Anti-Illicit Trade & Food Committee (British American Tobacco SEE d.o.o)

We support the efforts of the Government of Serbia aimed at combatting illicit trade and propose the establishing of a special department of the Prosecutor's Office that would be responsible for excise products

The grey economy impacts strongly on the entire society, and represents an important innovation. particularly the state budget, resulting in a worsening of the Measures in the field of policy on excise goods, primarily tobacco, oil investment climate, the creation of uneven market conditions, and coffee, are among the most sensitive, considering that such goods as well as a reduction in planned revenues and investments generate the largest differences in prices between legal and illegal mar in employment and development. kets, and the state budget loses the most on tax revenues in this area.

The outflow of funds into illegal flows prevents the state from In the area of tobacco and tobacco products sales, it is noticeable implementing its social and development plans and needs, which is that the illicit market has a strong influence. According to the statistics reflected particularly negatively in crisis situations like the one caused of the Ministry of the Interior, 2019 saw the siezing of some 89 tonnes by the COVID-19 virus. of cut tobacco and leaf tobacco (almost 70 tonnes more than in the

The problem of the grey economy cannot be eradicated through previous year), as well as over 100,000 boxes of cigarettes. ad hoc measures and individual activities. As such, FIC members Despite the positive trends, we are still confronted by a lot of insist consistently on a systemic approach to solving this issue. The unresolved issues. Government of Serbia officially Although the harmonisation declared the previous few years as years of the fight against the The introduction of a new system of of 78 sector-based laws with the Law on Inspection Oversight is grey economy, thus emphasising collection via online fiscal cash registers envisaged, this has yet to happen, the importance of this problem, which certainly marks a positive can be of great assistance in promoting while in the para-fiscal area an electronic register and portal with trend that must be accompanied an increase in legal transactions within valid fees for the use of public goods by tangible activities and results. The recent past was marked the economy have also not yet been introduced. FIC members insist on the by visible positive changes in the prioritised continuation of the systemic improvement of controls over illicit trade, first and foremost implementation of the National Programme for Combatting the Grey through the adoption and implementation of measures of the new Economy, the improvement of import and export procedures, but also Action Plan for the implementation of the National Programme for specialisations for judges for violations in the economy, which will Combatting the Grey Economy for the 2019-2020 period. contribute to the more efficient punishing of crimes and strengthen

In accordance with envisaged measures for improving the system the preventative role of inspections. of inspection oversight, preparations have been made for a functional One of the most important changes, but one that turned out to be analysis of the capacity of national inspections, which has identified a the most difficult to date, is ensuring the coordinated work of state clear need and envisaged the engagement of more than 1,200 inspe services (inspections, interior ministry, prosecution service, judiciary…). ctors by the end of next year. The use of the E-inspector information Continuous cooperation with responsible stakeholders in the economy system has been expanded, with connections made to most national and through education for consumers will ensure awareness is raised inspections in the country and the introduction of a unique Contact about the importance of combatting the grey economy and achieving a Centre for inspection supervision for citizens and the economy, which positive impact in all segments of society and the economy. ■