The National Assembly of the Republika Srpska (NARS) adopted the conclusions of the parliamentary majority regarding the information of the Government on measures in the field of indirect taxes to mitigate the negative effects of inflation, according to which the value added tax (VAT) rate on basic foodstuffs should be zero and 22% on luxury goods, while the amounts of excise duties on petroleum products would be zero BAM per liter of petroleum products.
In accordance with these conclusions signed by the caucuses of deputies of SNSD, SP, Demos, Ujedinjena Srpska, and NPS, the National Assembly proposes to send the Bill on Amendments to the Law on VAT, to the parliamentary procedure of Bosnia and Herzegovina (BiH). This Bill will define a reduced VAT rate of zero percent on basic foodstuffs and a higher VAT rate of 22 percent on luxury goods and services, with a temporal limit until December 31st, 2022.
The zero VAT rate is taxed on the supply of goods and services and the import of goods, more precisely medicines, flour, bread from all types of flour, milk and dairy products, edible oils and fats of animal and vegetable origin, salt, sugar, homogenized baby food and equipment for newborns, fertilizers and planting material.
At a higher VAT rate of 22 percent, sales of goods and services and imports of goods are taxed, namely high-quality wines and alcoholic beverages, high-quality cigars and cigarillos, luxury perfumes, eau de toilette and cosmetics, including beauty and make-up products, clothing and footwear of reptile fur and leather, jewelery and related articles, watches and parts, high-end electrical or optical apparatus, luxury vehicles for transporting persons on land, in the air, or on water, works of art, collectibles and antiques, pyrotechnic fireworks, lighters for cigarettes, pocket, table and other precious metals, luxury fountain pens and weapons.
Furthermore, the National Assembly proposes to send to the parliamentary procedure of BiH the Draft Law on Excise Duties in BiH, which will propose an amendment to Article 17 of the Law, so that the amount of excise duty on petroleum products is zero BAM per liter of petroleum products with a temporal limit for one month from April 1st, 2022, with the possibility of extension depending on price movements in the followingperiod.
Out of a total of 64 deputies present, 62 voted, and the conclusions were supported by 48 deputies, none was against, while 14 deputies abstained.
After the vote on the absolved items on the agenda, the President of the NARS, Nedeljko Cubrilovic, concluded the work of the 29th special session of the Parliament.
