Nezavisne novine: SARAJEVO – The Governments of BiH could increase the Value Added Tax so they can reduce the revenues from customs, which followed after beginning of application of the Interim Agreement between BiH and the EU, has been said by Fuad Kasumović, Deputy Minister for Finances of BiH.
“Revenues from customs have a big part in revenues of the state. By beginning of applying the agreement with the EU, the revenues of customs are reduced by 10 to 20%. In coming months we will systematically continue to reduce and cancel the customs for other products from the EU, which means less revenues. This can be redeemed only by increasing the direct or indirect taxes. Increasing the Value Added Tax is one of the possibilities”, Kasumović said.
He explained that for increase of direct taxes it is required to implement the encompassing reform in both entities, which is only on beginning. “Value Added Tax is already well functioning system. Increasing it is easier solution which will bring faster budget filling”, Kasumović said.
He is aware of the fact that citizens will be able to feel the increase of taxes, and that it will burden already burdened economy. “Increase of taxes is the short-term criterion on which politicians like to lean. Long-term solution for BiH is reduction of the state apparatus that spends the huge sums of money”, Kasumović said.
Ratko Kovačević, the spokesperson of the Indirect Taxation Authority of BiH, says that the Administrative Board of this Authority has considered the possibility of increasing the Value Added Tax, which currently is 17%.
„Administrative Board has talked about the ways to ease the droop of revenues from customs. They have talked about increasing the aczisa on luxurious commodity, and not about increasing the Value Added Tax“, explained Kovačević.
BiH has from July 1st this year started with the systematic abolishment and reduction of customs on the products from the EU.
Customs smaller for seven millions KM
Analysis of the revenues from customs for July of this year comparing to the same month of last year shows that they have dropped from 30 to 23 million KM. But the total revenues of the indirect taxes for the same period have increased for 2,9% because the import and the price of importing products on the world market have been increased, has been said by Ratko Kovačević, from the Indirect Taxation Authority.