No debate on excise duty increase at the session of the House of Representatives of Bosnia and Herzegovina

At the session of the Finance and Budget Commission of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina, it was concluded that the set of laws foreseeing an increase in excise duties on oil should be postponed again because they still have not received the opinion of the Indirect Taxation Authority of Bosnia and Herzegovina. Otherwise, the session of the Management Board of the Indirect Taxation Authority is scheduled for September 2, so tomorrow at the session of the House of Representatives, a conclusion will likely be adopted to prolong the adoption of these laws, writes the Bosnian news agency Patria.

We remind you that the deputies previously rejected the urgent procedure.

If these laws are adopted and adjusted to the requirements of the Council of Ministers, citizens in Bosnia and Herzegovina will pay 0.15 feninga more for fuel.

The Council of Ministers of Bosnia and Herzegovina made such a decision on June 29 this year, with the aim of respecting the undertaken contractual obligations and securing the necessary funds for regular servicing under loan agreements with the EBRD for the completion of initiated projects related to the construction of road infrastructure in the Federation of Bosnia and Herzegovina and the Republika Srpska.

Namely, in the agreements financing the construction of road infrastructure, clauses were agreed upon by which Bosnia and Herzegovina committed to increasing the excise duty on petroleum derivatives, which will represent a condition for the effectiveness of these loans.

- For this reason, the relevant loan agreements cannot become operational until the obligation is fulfilled. The increase in excise duties ensures the long-term sustainability of public companies engaged in the construction of road infrastructure and mitigates risks to the budgets of entity governments - point out from the Council of Ministers of Bosnia and Herzegovina.

Otherwise, the Proposal for the Law on Amendments to the Law on Excise Duties stipulates the following excise duties for petroleum derivatives: diesel fuel and other gas oils 0.45 KM, kerosene 0.30 KM, unleaded motor gasoline 0.50 KM, motor gasoline 0.55 KM, heating oil 0.45 KM, and biofuel and bioliquid 0.45 KM.