Will the imposition of import tax on milk lead to higher dairy prices?

The Serbian government has confirmed that it will impose an import duty of 15 dinars per litre of milk and 30 dinars per kilogramme of cheese in a bid to protect domestic production from excessive imports.

The import tax applies to seven types of cheese – Emmental, Cheddar, Edam, Tilsit, Kashkaval, Maasdam and Gouda, the government said in a press release.

Dejan Trajković, the owner of a dairy cow farm from Kovin, says that problems cannot be solved with just one measure.

“That’s why we want the government to implement a set of measures to solve the problem. Import tax is only one of the ways to level the dumping prices we have due to imports,” points out Trajković, who was one of the farmers who protested in front of the Agriculture Ministry in February.

“An import tax of 15 dinars for a litre of milk may solve some problems, but a tax of 30 dinars for cheese will not solve anything”, Trajković notes. “The mathematics is simple – the average price of imported cheese is about 3 euros per kilo. If you impose an import tax of 26 cents on it, its price will amount to 3.26 euros, which is not effective at all. However, if you impose an import levy that would amount between 300 and 500 dinars per kilogramme of cheese, then that could be effective”, Trajković adds.

He reminds that the import duty will apply only to one type of milk, excluding powdered milk and condensed milk. “The import duty has to be applied to every type of milk”, Dejan Trajković concludes.

(Danas, 22.02.2023)

https://www.danas.rs/vesti/ekonomija/hoce-li-uvodjenje-uvoznih-taksi-na-mleko-i-sir-spasiti-proizvodjace-ili-samo-podici-cene-u-prodavnicama/

This post is also available in: Italiano

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