BiH indebts for additional 210 Million Euros!

May 9, 2019 10:00 AM

The Council of Ministers of Bosnia and Herzegovina adopted at an extraordinary session the initiative of the Ministry of Finance and Treasury for conducting negotiations for the conclusion of the Loan Agreement (the Corridor Vc Project – Doboj Roadway) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD) worth 210 million euros.

The Initiative was adopted following an urgent procedure in accordance with the Law on Debtand Guarantees of Bosnia and Herzegovina.

 

In February this year, the Deputy Chairman of the Council of Ministers of BiH and Minister of Finance and Treasury Vjekoslav Bevanda signed a loan agreement with the representative of the Kuwait Development Fund Marwan Al-Ghanem, and the Director of the “Highway of the Federation of BiH” Adnan Terzic on a project contract for the construction of a highway at Corridor Vc members of Nemila – Donja Gračanica.

The loan agreement is worth about 34 million euros.

This loan would not be a subject of discussion if 620,7 million BAM of tax was not collected in 2018 for the road construction.

Namely, per liter of oil and petroleum products sold on the BiH market two tolls are paid. One is for the road construction and the second is for the construction of highways and construction and reconstruction of other roads, and in total there are two taxes in 2018 collected 620,7 million BAM, which is 238 million BAM more than 2017 .

“Such a big difference is due to the fact that in 2018 an increase of 0.15 BAM per liter of fuel was added to the roadway for the construction of highways and construction and reconstruction of other roads”, was stated for Patria Agency from the Indirect Taxation Authority of BiH.

When it comes to revenue distribution, they were divided in two ways. Of the total amount collected in the amount of 620.7 million BAM, the first part of the road construction route was 234.8 million BAM.

“These funds are allocated with all other income from indirect taxes, ie according to the coefficients adopted by the UIO Board at a quarterly level. The last coefficients adopted by the UIO Governing Board say that the Federation of BiH receives 64.26%, Republika Srpska 32.19% and Brcko District 3.55%. ”

“In the total amount of funds collected on the basis of toll of 0.25 BAM per liter of derivatives, besides the standard collected tolls, there are also funds collected from the list of supplies made on the day of the beginning of application of the Amendments to the Law on Excises (February 1, 2018).

This toll was collected on a special account of the Single Account that is opened in the Central Bank of BiH,” as noted from the Indirect Taxation Authority of BiH.

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