Indirect tax revenues up by 250 million KM, road toll distribution pending

Indirect tax revenues in the first five months of 2018 amounted to 2 billion and 939 million KM, an increase of 250 million KM or 9.3% compared to the same period in 2017, when they amounted to 2 billion and 689 million KM. More than 80% of the funds collected by the Indirect Taxation Authority (UIO) finance all levels of government in BiH: state, entities, Brčko District, cantons in FBiH, and municipalities throughout BiH.

Regarding revenues collected in May 2018 alone, the UIO collected 650 million KM in indirect taxes, which is 73 million KM more than in May 2017.

After VAT refunds to taxpayers, amounting to 554 million KM in the first five months of 2018, the net collected revenues distributed to beneficiaries – the state, entities, and Brčko District – amounted to 2 billion and 388 million KM, an increase of 200 million KM or 9.1% compared to the revenues received by beneficiaries from the Single Account in the same period of 2017.

For the financing of state institutions in the first five months of 2018, an amount of 306 million KM was distributed. The remaining funds were distributed as follows: the Federation of BiH received 1 billion and 272 million KM, Republika Srpska received 637 million KM, and Brčko District received 71 million KM.

In addition to these distributed revenues, based on the special road toll for highway construction (0.10 KM), collected in January 2018, the Federation of BiH received an additional 6.5 million KM, Republika Srpska 4.3 million KM, and Brčko District 0.2 million KM.

We remind you that since the beginning of February 2018, when the Amendments to the Law on Excise Duties in BiH came into effect and a special road toll of 0.25 KM per liter of fuel sold on the BiH market began to be collected, a separate sub-account of the Single Account was opened. This sub-account currently holds 97 million KM in dedicated funds for highway construction and for the construction and reconstruction of other roads in BiH. These are funds collected in February, March, and April, and revenues collected in May 2018 will soon be added, so an amount exceeding 120 million KM is expected.

The UIO will distribute the revenues from the special road toll for highway construction and the construction and reconstruction of other roads in BiH after the Steering Board makes a decision on the coefficients for the distribution of these revenues to beneficiaries.