IMF against introducing a differentiated VAT rate in BiH

(Patria) - The Director of the Indirect Taxation Authority (UIO) of Bosnia and Herzegovina, Zoran Tegeltija, met today with a delegation from the International Monetary Fund (IMF) led by Mission Chief, David Amaglobeli, along with his associates.

During the meeting, key topics related to indirect taxes were discussed, including current trends in revenue collection, fiscal projections for 2025, and possible reform interventions in the tax system of BiH.

One of the central topics was the recent amendment to the VAT Law, with a special emphasis on the increasingly frequent initiatives to introduce a differential VAT rate. IMF representatives emphasized on this occasion that the current system of a single VAT rate in BiH functions effectively and stably, and warned that the introduction of multiple rates could require complex technical solutions and potentially lead to revenue loss.

The possibilities of future cooperation between the UIO and the IMF were also discussed, particularly in the context of technical support for the planned modernization and transformation of the Authority, with the aim of increasing its efficiency.

Director Tegeltija thanked the IMF representatives for their cooperation so far, emphasizing that a new arrangement with this institution could be of key importance for the implementation of reforms that will improve the economic policies of Bosnia and Herzegovina.

The IMF delegation thanked them for the open and constructive dialogue, confirming their readiness to continue providing support for strengthening the fiscal stability and economic resilience of BiH.