There are frivolous and unfounded requests for postponement of VAT, says Miro Dzakula, director general of the Indirect Taxation Authority of BiH (ITA), in an interview with Dnevni Avaz.
He explained that for the first three months, revenues were higher by 59 million BAM compared to last year, but that data for April is not available for now.
“Now let’s see what happens. I think a drop should be expected. But what I think and say, such as in other countries on the globe affected by coronavirus, the VAT should not be changed. Because VAT is only paid when consumption is made. Therefore, VAT is paid on sales tax and services and fees. So those who do not work, do not provide services, have no obligation to pay VAT. And those who work, like shops, should pay VAT. And incentives should be reflected through direct taxes, through government subsidies for taxes and contributions,” says Dzakula.
These demands for everyone to be exempted from VAT are political rhetoric to reach out to those who respond, Dzakula believes.
“These requirements are neither based on law nor based on economic trends. It will all affect the macroeconomic stability of Bosnia and Herzegovina. It is very clear who does not work, is not even obliged to pay. If it is touched by VAT, it is 80 percent of the fiscal revenues of all levels of government, and if it is touched without analysis and calculating what will happen if the deadline is changed or they are released, it is not serious,” says Dzakula.
(Photo: Poslovne Novine)