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Reading: The Government of the Federation of BiH allocated One Million BAM for Subsidies for Electric Cars
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Sarajevo Times > Blog > BUSINESS > The Government of the Federation of BiH allocated One Million BAM for Subsidies for Electric Cars
BUSINESS

The Government of the Federation of BiH allocated One Million BAM for Subsidies for Electric Cars

Published August 1, 2024
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Today, the Government of the Federation of Bosnia and Herzegovina, on the proposal of the Ministry of Energy, Mining and Industry, passed decisions on the adoption of two spending programs of current transfers and other current expenditures from the budget for 2024, intended for this ministry to subsidize the purchase of electric cars, in the total amount of 1,000,000 BAM.

In accordance with the programs, 500,000 BAM is intended for private companies and entrepreneurs for incentives for the purchase of electric cars, and the same amount for subsidies to individuals (natural persons).

The amount awarded as an incentive to private companies and entrepreneurs, as well as to individuals, is 10,000 BAM for electric vehicles, and 7,000 BAM for hybrid electric “plug-in” vehicles. Funds can be allocated to private companies and entrepreneurs for the purchase of a maximum of two, and individuals of one vehicle.

It is explained that the aim of the subsidies is to directly encourage the purchase and use of electric vehicles, as part of the implementation of measures to improve air quality and improve the quality of the environment, and the Federal Ministry of Energy, Mining and Industry is one of the carriers of the implementation of measures to reduce the negative impact of the transport sector on the environment. defined in the objectives of the FBiH Development Strategy 2021-2027. year.

By co-financing the purchase of electric and hybrid cars, the Government of the Federation of Bosnia and Herzegovina directly affects the improvement of air quality, as well as the reduction of sources of air pollution, i.e. greenhouse gas emissions in road traffic.

Grant funds from the Ministry will be allocated in accordance with the programs adopted today and the public calls announced.

The purpose of these two programs is to grant subsidies for the purchase of new cars, registered in FBiH in the period from 1.1. until 30.11.2024. year, which have an exclusively electric drive and cars that, in addition to the internal combustion engine, are powered by an electric drive (“plug-in” hybrid cars). It is reasoned that a new car is considered a passenger vehicle that has not been in use and has never, anywhere was registered, i.e. a vehicle that was not registered before January 1, 2024. Also, the vehicles for which the subsidy is granted are those with a maximum of nine seats, including the driver’s seat (passenger vehicles of category M1). acceptable vehicles are electric vehicles with a CO2 emission of 0 g/km, and hybrid “plug-in” vehicles with a CO2 emission of less than 50 g/km.

In the explanation of these two programs, it is stated that BiH is a signatory to the Paris Agreement on climate change, as well as the Sofia Declaration on the Green Plan for the Western Balkans, and that EU strategies and directives emphasize the need to decarbonize the transport sector and reduce emissions from transport, especially in urban areas.

The federal ministries of energy, mining and industry, and finance are responsible for the implementation of today’s decisions of the Government of the Federation of Bosnia and Herzegovina, each within their own jurisdiction.

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