Record income from indirect taxes was achieved in July in the Administration for Indirect Taxation of Bosnia and Herzegovina (ITA BiH). It is 951 million marks and it is the highest monthly income since the foundation of the institution.
The largest amount of revenue increase refers to VAT in internal traffic, said this institution. To whom and how does the money go and how much will it be felt by the citizens who, while the country is getting richer in inflation, are getting poorer and poorer?
The realized income from indirect taxes is divided into three parts, for state institutions, entities and Brčko District. How much and whether citizens will benefit from it depends on how the entities distribute the money. While the authorities decide on the distribution of money, citizens find it increasingly difficult to live due to inflation.
– “Wages are low, pensions are low, and everything is more expensive, when prices rise, salaries and pensions do not increase.”
– “You see that this is all poor. The prices are the same as in Germany, even more expensive.”
– “Price increases are constant and salaries remain the same, so we don’t have enough funds, there are a lot of taxes and little income, a lot of taxes. Everything is paid for, literally, they just have to start charging us for air.”
On the other side of reality, the state is getting rich.
Ratko Kovacevic, Directorate for Indirect Taxation of Bosnia and Herzegovina: “In seven months of 2023, the Administration allocated 587 million convertible marks for financing state institutions, the Federation received two billion and 540 million marks, Republika Srpska received one billion and 376 million marks, Brčko District received 141 million marks.”
During the season, citizens spend more money regardless of the price increase, and this directly affects the increase in income from indirect taxes.
Admir Cavalic, economic analyst: “As for the entities, they will probably go into rebalancing based on new revenues, it has already started in the Federation, probably the Republika Srpska will follow after August.”
Zoran Pavlovic, economist: “Unfortunately, this is not the result of increased economic activities. The largest part of the money that is distributed between the entities and the Brčko District is first used to service obligations to foreign countries. We do not have investment funds, funds from which the Ministry of Economy would support projects of new capacities, new employment.”
Citizens pay dearly for VAT on basic foodstuffs and medicines, excise taxes on fuel, along with the constant increase in prices. This is precisely why the state gets rich, it does not give up its income and does not work for the benefit of its citizens, who are almost surviving, our interlocutors concluded.
