Business losses from food waste reach the total value of up to 2 percent to 4 percent of the annual turnover of businesses and that this loss is very significant in the long run, says the Retail Association.

According to the announcement of this organization, businesses are facing constant difficulties in dealing with this issue.

“In light of the results of 2019 of the Tax Administration of Kosovo, the Retail Network expresses dissatisfaction with the ongoing difficulties faced by businesses dealing with retail trade, difficulties that are closely related to the activity of the Tax Administration and Ministry of Finance. More precisely, this dissatisfaction has to do with the failure to address the issue of food waste. The issue of the firm is closely related to the Law on Value Added or the Regulation on the Implementation of the Law on Value Added Tax as the treatment of the firm requires determination of the ordinary deficit or the maximum allowed value of the settlement of the goods, from which no value-added tax is calculated and not paid. “Such practices are applicable and are in line with European legislation and standards”, says the Retail Association, Telegrafi reports.

RRSHP says that this issue requires immediate addressing by the country’s institutions.

“It has been more than a year since the Retail Association has raised the issue of callus for sale. This issue requires immediate addressing by the country’s institutions, but so far no action has been taken. According to the legislation in force, the destruction of goods as a result of expiration, breakage, obsolescence or damage is sanctioned pursuant to Article 19, Paragraph 10 of the Law on Tax Administration and Procedures. This action is in accordance with the rules and conditions set out in the Administrative Instruction for the implementation of this Law. “Apart from food products, there are other products that can be categorized as losses based on breakage, decay or other damage that change the physical or chemical content of the product”, the announcement continues.

Finally, the Retail Network seeks long-term solutions to treat food wastes in line with EU legislation. The Retail Association proposes as a possible solution a specialized regulation that deals only with these aspects.

“For example, an administrative instruction can be adopted that instructs how to record the entry of each product in terms of loss. Another possibility is for this issue to be addressed within the draft law on value-added tax. “The Retail Association demands that this barrier of the above-mentioned businesses be addressed as soon as possible in order to minimize and eliminate the losses that businesses are suffering unnecessarily and not through their fault”, the announcement concludes.