Dnevni avaz: After the Administrative Board for indirect taxation of BiH has given a negative opinion, the Commission for Finance and Budget of BiH of the House of Representatives has refused the proposal for introduction of the zero rate of the VAT on primary subsistence items, plant material and seeds, animal food, school supplies, service of publishing and issuing books, brochures, magazines and publications, daily and weekly newspapers and official gazettes, and papers for publishing newspapers and publications.
Unacceptable option
It has been suggested that the rate of VAT should be reduced from 17 to 5% for the flour, bread, milk, cooking oils and bio fats, plain water, orthopedic aids, food and supplies for the babies, and artificial compost, protective equipments in agriculture, etc. As it was confirmed by the chairman of the Commission, Sadik Bahtić, in the same time with the rejection of this proposal, there has been a demand directed to the Council of Ministries to create a detailed analysis of introduction of zero or reduced rate on primary subsistence items.
Vanish from the usage
It is unacceptable for the Commission to speak about increase of the VAT rate, which is for beginning of 2009 an unavoidable option, has been announced by the Deputy Minister for Finance of BiH, Fuad Kasumović. On the increase of the VAT to 21% for exclusively luxurious products, can be spoken only if for the primary items, medications….VAT can be reduced to 5% – claims Bahtić.
President of the MB ITA Dragan Vrankić says that, according to directive of the EU, it is not possible to introduce a zero rate, neither the reduced one is recommended. He says that the general opinion of the European Commission is that differentiated rates of VAT need to vanish from the usage. In the countries that are candidates for the EU membership, privileged rates can be imposed only by the EC approval.
Vrankić concludes that introduction of reduced rate cannot offer the effects in solving social issues. Because of this he says that the smartest thing to do is to help helpless citizens through funds, water subventions, electricity, food, medications, communal services….
Hearings follow because of the bad results
The Commission has discussed about reports of the auditors on financial institutional business among which there are 45 negative, while 11 of them have a positive grade. Bahtić has announced that the representatives of institutions with a negative grade in this and next month will be called for hearing. Eight members of the Commission with a ninth member Zlatko Lagumdžija who was not present neither in the previous, nor this year’s conference, even if he takes money for that “work”, will have the conversations with the representatives of institutions. First hearing will be held on September 9th, when I expect representatives of 12 institutions with a negative auditor’s grade – says Bahtić.