Municipality of Bugojno must return money to betting shops from illegal taxes, will Zenica face the same decision?

The Cantonal Court in Novi Travnik ordered the Municipality of Bugojno to return 9,000 KM, plus interest, to the sports betting shops “Sport plus“, which the Municipality collected from the betting shops in 2013, based on utility taxes, which the Constitutional Court of FBiH has now ruled are contrary to the Constitution of the Federation of BiH, writes Patria.

Municipal authorities in Bugojno adopted a Decision three years ago according to which legal entities in Bugojno are required to pay around 400 KM annually for a displayed company sign, while this tax for betting shops amounts to 600 KM. The Constitutional Court of FBiH declared such a decision by the local authorities in Bugojno unconstitutional. All legal entities in the FBiH must have equal rights.

Gambling game organizers believe that the Constitutional Court of FBiH could make the same ruling in the case of Zenica. The Mayor of Zenica, Fuad Kasumović, proposed an increase in taxes for betting shops in Zenica, from 3,000 KM they paid until now, to 30,000 to 50,000 KM, depending on the location of the betting shop. The city councilors supported Kasumović’s decision with a majority of votes. The decision came into effect from the beginning of this year. All of this has triggered a wave of public criticism.

Due to high taxes in Zenica, Lutrija BiH closed all ten of its branches. Private organizers have announced a fight before the competent courts. They consider the decision to increase taxes to be discriminatory. Eight councilors from Snaga centra and two from A-SDA requested that the Government of ZDK urgently initiate an assessment of constitutionality before the Constitutional Court of FBiH. They believe that the sooner the Court makes a ruling, the fewer problems the City will face.

- If the Municipality of Bugojno has to return more than 10,000 KM to ten betting shops due to a 200 KM higher tax, Zenica will have to return a multi-million amount if the Decision on utility taxes is not immediately repealed - believe the gambling game organizers.

- In Zenica, you have slightly more than 100 betting shops. The utility tax for them has been increased from 3,000 KM to 30,000 to 50,000 KM. This would be about three million KM in illegal taxes for just one year, even if we assume that betting shops pay a minimum of 30,000 KM. And those in prime locations will pay even more. Interest is not included here - claim the gambling game organizers.

- In addition, some betting shops will close their branches in Zenica after such a decision by the local authorities. What if the Constitutional Court of FBiH makes a ruling as in the case of Bugojno? The City of Zenica will have to compensate the betting shops that have closed their branches for every mark they have not earned during the period of this dispute, and they could have earned it. The City will also have to pay damages to Lutrija BiH. Ten of this company’s payment points have not been operational since New Year's - believe the game organizers.