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Kosovo Property Tax Initiatives Bear Fruit

A new strategy applied by Gjakovë/Djakovica municipality, with assistance from USAID's Local Government Initiative, resulted in an increase of property tax collection during August and September 2006. USAID's Economic Development Initiative and the Ministry of Finance and Economy joined the local leadership in implementing a city-wide public information campaign. Through meetings with citizens, civil society organizations, and the business community, the property tax collection unit managed to double their collections over the last two months of the third quarter. Overall, August monthly collections increased 112% from the previous year, and September collections rose 250% from the same period in 2005.

In addition to raising citizens' awareness, the municipality introduced new enforcement measures in accordance with the United Nations Interim Administration Mission in Kosovo (UNMIK) regulation. These include suspension of municipal services to property of businesses that had not paid their taxes, and revocation of working permits and business licenses.

By continuing this trend, the municipality of Gjakovë/Djakovica, through its own efforts and with assistance from the LGI team, will progress to securing its adequate source funds of its own funds to serve its citizens.

Photo from a previous USAID-supported tax collection campaign in Suhareka/Suvareka
Photo from a previous USAID-supported tax collection campaign in Suhareka/Suvareka

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