The proposed extension of the VAT preferential rate in the construction sector up to 2018 will create conditions for further expansion in the building of housing facilities, said Vice Premier and Finance Minister Zoran Stavreski on Friday.

Stavreski expects the Parliament to pass the VAT law amendments by the end of July.

"The Government took into consideration the request by the Construction Chamber, meaning that construction and primary turnover of flats is charged with a preferential tax rate at five percent, enabling the further expansion in the sector and maintaining lower prices", said FinMin Stavreski during a visit to the Macedonian Chambers of Commerce (SSK).

According to him, the measure, initially adopted in 2009, has resulted in a significant increase in the construction of flats throughout Macedonia.

"There were about 600-700 flats annually built prior to the measure, rising to 1,700-1,800 housing units since. The second benefit is the lowering of prices by about EUR 100 per m2", added Stavreski.

Robert Hot, chairman of the SSK Construction Chamber, said the Government measure would contribute to stable growth of the sector.

"The cooperation will continue in the future, we are in talks with other ministries, jointly contributing to the elimination of unfair competition", stressed Hot. ts to the Law on Misdemeanors passed in parliament, has significantly declined the severe fines with which the companies faced in recent years, Arsova said.