Members of the Joint Committee for Economic Reforms and Development of the PABiH visited ITA BiH

The Chair of the Joint Committee for Reforms and Development of the Parliamentary Assembly of Bosnia and Herzegovina (PABiH), Ermina Salkičević-Dizdarević, Deputy Chair of the Joint Committee Ilija Cvitanović, and members of the Joint Committee Snježana Novaković-Bursać, Mladen Bosić, and Šemsudin Dedić visited the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina in Banja Luka today.

The management of ITA BiH, led by Director Zoran Tegeltija, briefed the members of the Joint Committee on all currently important topics related to indirect taxes. It was emphasized that, for the first time since the establishment of this institution, annual revenues from indirect taxes are expected to exceed 10 billion BAM.

Discussions included proposals for legislative solutions related to VAT, customs, and excise duties, which have been frequently mentioned in the public discourse in recent months. This pertains particularly to numerous demands for VAT exemptions, reduced VAT rates, or requests for VAT refunds on a wide range of goods.

The members of the Joint Committee were informed about the working conditions of ITA BiH officials. In this context, particular emphasis was placed on the poor working conditions at the ITA headquarters and the Regional Centre in Banja Luka. The need for better technical equipment of ITA was highlighted at the meeting, required to enhance the performance of its fundamental tasks, primarily providing better services to taxpayers.

Discussions during the meeting also addressed the need for a comprehensive amendment to the VAT Law, the Law on the System of Indirect Taxes, and the necessity of strengthening the internal capacities of ITA BiH. Discussions also covered the status of several initiatives adopted in the PABiH, such as abolition of VAT on donated food and the increase of the threshold for entering the VAT system as well as plans and possibilities for increasing the upper limit for the purchase of vehicles for disabled persons and plans regarding the renovation of border crossings which are in poor condition.

The discussions during the meeting also covered the existing system related to the payment of VAT on medicines, fees during the registration of new economic entities, and the information on the possibilities and risks of shifting the final date for VAT calculation.