Employers Association of FBiH calls for ban on log exports and export tax

SARAJevo, (Patria) - The Employers Association of the Federation of Bosnia and Herzegovina welcomes the initiative of the Government of the Federation of BiH sent to the Council of Ministers of BiH to adopt a Decision on a temporary ban on the export of firewood and pellets from Bosnia and Herzegovina until 31.12.2022. The UPFBiH calls on the Council of Ministers of BiH to adopt this Decision as soon as possible and thus create conditions for the timely supply of BiH citizens with these energy sources. 

The UPFBiH also calls on the Council of Ministers of BiH to adopt a Decision on a temporary ban on the export of logs and the introduction of temporary export duties on certain wood assortments of a lower degree of processing.

The UPFBiH previously submitted a proposal to the Council of Ministers of BiH for a Decision prohibiting legal and natural persons from trading logs outside the territory of BiH and introducing a tax on the export of logs and other wood assortments of a lower degree of processing. The Decision would be temporary and valid for a period of 24 months.

Furthermore, we remind that wood processors in BiH have been facing the problem of raw material shortages for years, as a large percentage of exports consists of raw materials and sawn timber. Huge quantities, especially of deciduous trees, are illegally cut and exported from BiH in lower processing stages. Although more than half of BiH's territory is covered by forests, wood processors are forced to import raw materials due to poor legal solutions and unfair distribution within our country. Therefore, it is necessary to introduce measures that will prohibit the export of logs and introduce taxes on the export of certain wood assortments, which will meet the needs of wood processors in BiH.

We remind that the wood processing industry in BiH records constant growth and a surplus in foreign trade, and the adoption of a decision to ban the export of logs and introduce export duties on wood assortments with a lower degree of processing would give even greater momentum to the development of this industry. We emphasize that meeting the needs of wood processors in BiH for raw materials, especially those with a higher degree of final wood processing, will increase the number of employees in the wood processing industry.

A comparative legal analysis of regulations in neighboring countries and European Union countries shows that most countries have introduced taxes on the export of wood assortments or completely banned their export.

For example, Austria, Croatia, Montenegro, and Kosovo have had taxes on the export of certain wood assortments for many years.