Džakula: We have almost exhausted the capacity for indirect taxes in BiH!

Bosnia and Herzegovina is approaching its maximum in collecting indirect taxes, warned Miro Džakula, Director of the Indirect Taxation Authority of Bosnia and Herzegovina, in a statement to the BiH news agency Patria (NAP).

This indicates that BiH will no longer have room for any revenue increases, and the way out of economic problems will have to be sought either in austerity measures or investments. Taxpayers will no longer have anything to take out of their pockets, NAP reports.

According to Džakula, estimates for the first quarter of this year regarding revenues indicate that they will be higher or within the planned range, but this is not a key indicator of the economic and fiscal situation in BiH.

Džakula points out for NAP that the growth of 67 million marks in the first two months compared to the same two months last year is not a result of increased final consumption, i.e., greater economic activity. On the contrary.

- This growth is largely the result of the Indirect Taxation Authority's activities in combating the grey economy. Revenues from direct taxes constitute 86 percent of total revenues in BiH, which is not a natural situation. We constantly have growth, which cannot be said for direct taxes, which are under the jurisdiction of the entities – says Džakula.

As he points out, it is not within his jurisdiction to talk about the spending of collected funds, but he states that the ITA is achieving excellent results when compared to countries in the region. According to him, the state must legally specify and introduce excise taxes on cut tobacco.

- This market is too demanding, and the state must respond with its instruments and by introducing excise duties – says Džakula.