The City of Banja Luka has filed a lawsuit against the Government of Republika Srpska for compensation in the amount of 2.8 million BAM due to, as stated, illegally seized funds from VAT collection.
This was confirmed by Vedrana Prole, the Mayor’s Advisor for Legal Affairs, stating that the city would direct the aforementioned funds to finance capital projects.
“These are VAT funds that were illegally seized from Banja Luka, which was also confirmed by the Constitutional Court of Republika Srpska. In the past, the city has tried to resolve this issue peacefully, and several letters have been sent to the Ministry of Finance of Republika Srpska, but without success,” said Prole.
Therefore, court proceedings have now been initiated.
“In order to secure funds for financing capital projects, the City of Banja Luka was forced to file a lawsuit against Republika Srpska – the Government of Republika Srpska, for compensation in the amount of 2.8 million BAM for illegally seized funds from VAT collection,” Prole pointed out.
As she stated, the lack of these funds significantly burdens the budget of Banja Luka, so the city is forced to provide funds for planned capital investments through loans.
“The funds that were taken from Banja Luka would be used for new or completion of significant city projects, all with the aim of further developing our city,” concluded Prole.
