Excise Tax Increase on Hold: No Fuel Price Hike

Today, a session of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina will be held, and prior to the session, the House Collegium will convene to consider the conclusion of the Budget and Finance Commission, which requests a 30-day extension for submitting opinions on legislative proposals related to excise taxes, the indirect taxation system, and revenue distribution. The Commission also requested that the Management Board of the Indirect Taxation Authority of Bosnia and Herzegovina submit its opinion on these matters as soon as possible, Patria reports.

The Collegium will present the conclusion of the Budget and Finance Commission to the deputies, who will then vote on the request for a 30-day delay and the opinion of the ITA BiH. It is certain that this set of three laws will be removed from the agenda in accordance with the conclusion.

We remind that at the session of the House of Representatives of the PA BiH held on July 19, deputies rejected the request of the Council of Ministers of BiH for these laws to be considered under an urgent procedure, and it was decided that the laws would proceed to the commission phase.

Incidentally, according to the proposed amendments to the Law on Excise Taxes, fuel would be more expensive by 0.15 fening. The increase in excise taxes and fuel prices is one of the contractual obligations undertaken and a means of 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 BiH and the Republika Srpska. Namely, the agreements financing the construction of road infrastructure include clauses by which BiH has committed to increasing excise taxes on petroleum derivatives, which will be a condition for the effectiveness of these loans.

As previously stated by the Council of Ministers of BiH, the relevant loan agreements cannot become operational until this obligation is fulfilled.

- Increasing excise taxes ensures the long-term sustainability of public companies engaged in road infrastructure construction and mitigates risks to the budgets of entity governments - emphasize from the Council of Ministers of BiH.

Incidentally, the Proposal for the Law on Amendments to the Law on Excise Taxes sets the following excise rates for petroleum derivatives: diesel fuel and other gas oils 0.45 KM, kerosene 0.30 KM, unleaded motor gasoline 0.50 KM, leaded motor gasoline 0.55 KM, heating oil 0.45 KM, and biofuels and bioliquids 0.45 KM.