Amidžić against reducing VAT and excise tax rates, but would gladly cut the BiH Armed Forces budget by 300 million KM

(Patria) - Minister of Finance and Treasury Srđan Amidžić (SNSD) opposes changes to the VAT rate. He claims it would jeopardize the liquidity of the budgets of BiH institutions, as well as entity budgets.

"Those who propose a VAT reduction are proposing extra profit for all retail chains. Prices would not fall, and we would have uncertainty. I think we should move towards increasing workers' incomes. When you ensure income growth, people will be able to compensate for price increases in that way, and you will have stability of the budget and all beneficiaries.
This is a sustainable measure, and for now, I hear that only the RS Government is committed to it," said Amidžić.

He also opposed the initiative to reduce excise taxes.

“The Council of Ministers does not have the right to decide on the original revenues of the entities. I am against it because it reduces the rights of the RS. Why are Bosniaks agreeing to this. This would mean that the Council of Ministers decides on reducing excise taxes in the first step, and on VAT in the second step. And that is a transfer of competencies," he stated.

Amidžić also lashed out at the Ministry of Defense, i.e., the BiH Armed Forces, stating that they cannot "defend us from anything".

“The AF are sharply divided between Serbs, Bosniaks, and Croats, and we spend 400 million KM annually. Let's reduce that to 100 million KM. Why doesn't the opposition from the RS propose reducing allocations for the Armed Forces. You would see what the Bosniaks would tell them," said Amidžić.

He said that the construction of highways and roads is financed by excise taxes and that such an idea does not have the support of the RS.

He confirmed that the Global Fiscal Framework, which precedes the proposal for the BiH Institutions Budget, has not yet been adopted, and he blamed Nermin Nikšić, the Prime Minister of the FBiH, for this. However, Nikšić previously stated that he supported the Global Fiscal Framework on February 3rd, and then representatives of the RS withdrew their consent.

Amidžić said that he would gladly withdraw from the BiH Council of Ministers, but then Muhamed Hasanović would decide on everything.