Kojović: Donated food must not be taxed

(Patria) - Predrag Kojović, a representative of Our Party in the BiH Parliament, today initiated the abolition of VAT on donated food.

"The current tax policy stimulates businesses to destroy food whose expiration date is approaching. Economist Faruk Hadžić proved this very illustratively. For example, in 2020 alone, the value of donated food in Bosnia and Herzegovina amounted to 82.70 million KM, and about 12 million KM went to VAT for these purposes. In the same year, the value of destroyed food amounted to over 126 million KM, which is 53 percent more than the value of donated food. By abolishing VAT on donated food, a significant portion of food intended for destruction would be directed to donations, which would benefit both companies donating that food and the citizens to whom this food is donated, which are most often socially vulnerable categories, users of public kitchens, and the like," says Kojović.

Kojović also points out that representatives of the Indirect Taxation Authority of Bosnia and Herzegovina have so far shown readiness to introduce a zero VAT rate for food donations.