Half of the job in the preparation of the Law on value-added tax (VAT) has been done and it is expected to be filled in with concrete figures soon, said for Montena-business a source close to foreign councillors of the Government. With this law, foreign experts propose single tax rate of 18% for both goods and services because of the simpler and cheaper procedure of data processing. At present, there are different tax rates for services and for goods. “Local experts from the Government want to keep two tax rates, but we insist on a single tax rate because of the simplicity and easier adjustment of people to VAT, which is a very complicated procedure for beginners,” said the unnamed source. The number of tax exemptions would be drastically reduced till the passing of this law. Experts propose exemptions in medical services, education, flat rent and financial services in other developed states. “We are surprised at the present number of exemptions in the law. There are pages and pages of laws with the lists with tax exemptions. If it is not stopped, there is no need to introduce the VAT,” said Montena-business collocutor. Experts say that VAT would be implemented in cases when daily or monthly turnover exceeds the limit set up by the law, which is yet to be defined by economic experts. “If that turnover is small, then there is no need to implement VAT, but the common taxing system, because the opportunities for avoiding tax payments are smaller,” said experts. The main role of VAT is to eliminate the avoidance of the turnover tax and its passing would gradually adjust our taxing system to the European Union. The value-added tax (VAT) is collected in phases on every turnover of goods and services, so that both the producer and wholesaler pay the tax, but the part they paid from the supplier is always detracted.