By proposing differentiated rate of excise tax on beer, BiH authorities, have finally met the demands of the domestic beer industry to protect them from the enormous import and consumption of foreign beer, by which BiH is the first in Europe, say analysts.
Steering Committee of the Direct Taxation Board (UIO) BiH has adopted the proposal of BiH Council of Ministers and made Draf Excise Law which stipulates two excise on beer; 0.20 BAM by 1 litre for beer companies with three-year average of production of 400 000 hectolitres, and 0.25 BAM for beer producers with higher production.
Member of the Steering Committee of UIO Vladimir Trifković said that they it is done in accordance with the EU, whose members have different excise rate on beer which protects small beer producers from global beer corporations.
He said that the proposal stipulated 0.35 BAM, but they reduced it to 0.25 BAM, in order to avoid remarks from the European Commission concerning the large difference between excise rates.
Fixed excise rate is good to domestic beer producers, because no producer has larger production of 400 000 hectolitres. ‘Banjalučka pivara’ and ‘Sarajevska pivara’ had the production between 360 000 and 370 000 hectolitres, ‘Tuzlanska’ around 140 000, ‘Bihaćka’ below 100 000 hectolitres.
The draft law has been sent to competent entity assemblies, after which it will be returned to BiH Council of Ministers, who will send it as a proposal to BiH parliament.
‘Banjalučka pivara’ said that this initiative started from BiH Ministry of Foreign Commerce and Economic Relations, and it shows that there is enough political will for protection of domestic production, noting that such demand, to protect domestic production from over-import through mechanisms which stipulates CEFTA, was rejected earlier.
