Nešić: We are in the worst phase when we borrow to repay old loans

(Patria) - The Democratic People's Alliance calls on the Minister of Finance of Republika Srpska, Zora Vidović, and the Chairman of the Council of Ministers of BiH, Zoran Tegeltija, to explain to citizens and businessmen whether the new BiH excise tax law and the VAT law are measures to combat the economic damage caused by the coronavirus pandemic or a new blow to the economy and citizens' living standards to plug budget holes. Only an incapable and irresponsible government would introduce new taxes in such conditions, said the president of DNS, Nenad Nešić.

The president of DNS warns that draft laws on excise taxes and VAT are being prepared, which would introduce electricity, solid fuels, natural gas, and liquefied petroleum gas for heating, as well as a whole range of other products, as excisable goods.

- Although electricity in households will not be an excisable product, it will be in production, which will lead to a chain reaction of price increases and a blow to both the economy and citizens. It seems that the SNSD - SDA - HDZ coalition only functions when it needs to reach into the pockets of the economy and citizens to plug budget holes - Nešić points out.

In times of recession, emphasizes the president of DNS, it is necessary to reduce tax burdens on salaries to increase minimum wages, on which 60 percent of citizens live, writes BNTV.

- This would also lead to increased consumption and growth in VAT revenues. However, it is clear that they are in a hurry and have budget problems, so they are hastily and at all costs adopting measures that are anything but help to the economy and citizens in the face of economic damage caused by the pandemic. We have reached the worst possible phase when we borrow to repay old loans and increase taxes to maintain short-term liquidity. No one is thinking about the consequences of such fiscal policy and what tomorrow holds - says President Nešić.

He also states that he will fight with all democratic means to prevent new planned taxes and that, as he says, "these perverse and anti-people laws do not receive support in parliament."