Bosnia and Herzegovina (BiH) is the only Balkan country where VAT is the same for bread and a yacht. Food prices in BiH are higher than the standard of living of most citizens, and the consumer basket is more and more expensive than the monthly income. And while the VAT rate is the same for food and for luxury products, throughout our country bread “from yesterday” has become a lifesaver.
“Yesterday’s” bread, which fails to sell during the day, already the next day becomes a saving morsel, sold for 20 pfennigs. Scenes of loaves of bread left next to containers, as well as advertisements for the sale of old bread at half price – this is a devastating picture of our society today.
The basic necessities of life have become a luxury. The new increase in energy prices opened up old questions – will bread become more expensive again? The initiative to introduce the so-called national bread, modeled on the countries of the region, which would be cheaper and more accessible to citizens, but – words have not yet been translated into action.
“That bread would be 80 pfennigs and it would be bread for the masses,” explains Bosko Radic, president of the Association of Agricultural Producers of the village of Semberija.
Radenko Pelemis, president of the Association of Bakers of the Bijeljina region, believes that by abolishing VAT on bread as a basic foodstuff, and if bakers would also participate, bread prices would be 20-30 pfennigs lower.
In order to suppress the uncontrolled growth of food prices, it is essential to take measures in the form of the abolition of VAT on basic foodstuffs. But analysts are pessimistic that it will get to that point.
“Inflation is useful to the government, because price growth brings higher VAT, which flows into the budget. and that inflation, in fact, robs the people”, claims economic analyst Aleksa Milojevic.
As part of the “Socially Responsible” campaign, which is carried out in the Republika Srpska (RS), the margins for several hundred products have been partially reduced, while 50 products are completely without margins. However, this is not the final solution, analysts believe. Other measures are needed, such as higher subsidies for agriculture and infrastructure.
Pelemis points out that the measures taken by the Government will not bring results, but that salaries must be increased in order to improve the standard of citizens.
“We can save ourselves only by using domestic resources, what we have, at least not importing them. Unfortunately, it turned out the other way around for us,” adds Jovan Vasilic, president of the Zvono Bijeljina Consumers Association.
In the long term, VAT on basic food items must be abolished, warn analysts and state that the authorities in BiH have not been doing the best for years, they say, the example shows that in BiH you can buy a loaf of bread and an expensive yacht for the same VAT rate, Federalna reports.
E.Dz.
