Prezentacija o PDV-u/ Presentation on VAT (English only) - Jean Tesche Professor, Sarajevo Graduate School of Business

FENA 08/09/2004 ITA insists on uniform VAT

090804 as

FSA6451: 08.09.2004 03:14

BiH-PRESIDENCY

BiH PRESIDENCY MEETS TODAY

SARAJEVO, September 8 (FENA) – The BiH Presidency will hold a session in Sarajevo today.

The proposal for appointing BiH representatives to the International Civil Aviation Organisation (ICAO) and the proposal for giving approval for the appointment of British and Israeli Ambassadors will be on the agenda.

The BiH Presidency will also discuss the report on the implementation of the BiH Budget in 2003, the report on BiH internal debt and the request of the BiH National Monuments Commission.

The Presidency is also expected to adopt the framework agreement between BiH and the EU on general principles for the participation of BiH in the Community Program, as well as the program of cooperation in the field of education, science and culture between the Russian Government and the BiH Council of Ministers.

(Fena) jc

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FSA6449: 08.09.2004 03:09

BIHAMK - ROADS

ROAD REPORT

SARAJEVO, September 8 (FENA) – Most roads in BiH are open for traffic today and there are no major restrictions.

Work on disassembling a bridge along the M-4 Doboj-Tuzla road is underway causing brief interruptions. During these interruptions traffic is redirected to detour roads.

Repair work is also underway along Doljani-Mostar-Jablanica, Lasva-Zenica, Modrica-Bosanski Samac, Izacic-Bihac, Kljuc-Jajce-Donji Vakuf, Banja Luka-Klasnice, Derventa-Seslije and Dobro Polje-Miljevina roads.

There are no major delays at any of the border crossings.

In Sarajevo due to work on laying and repairing tram tracks the Obala Kulina Bana street will be closed for traffic for several days. During this period the Obala Kulina Bana street will be closed for traffic between 18 and 0:6 hrs.

(Fena) jc

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FSA6454: 08.09.2004 03:24

FOCA-SNSD

DODIK: RS ENDANGERED BY BAD POLICY AND CRIME

FOCA, September 8 (FENA) – RS Alliance of Independent Social-Democrats (SNSD) President Milorad Dodik thinks that the RS is endangered by bad policy and criminal activities conducted under the protection of current authorities.

At an election rally held in Foca last night Dodik spoke about the RS Auditor’s report on various abuses and crime and stressed that the RS Elektroprivreda embezzled 167 million KM.

“The Buk Bijela hydropower plant could have been built three times by now, but those from Telekom Srpske stole 63 million KM from us. We have learned from Auditor Bosko Ceko several days ago that 18 million KM have also gone missing in the RS Ministry of Interior and we are only about to hear what was stolen in Srpske Sume”, Dodik said.

He expressed confidence that changes would come about at the next elections.

Dodik stressed that not much attention should be given BiH Presidency Chair Sulejman Tihic’s attacks on the RS and added that he poses no real threat to the RS.

(Fena) jc

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FSA6459: 08.09.2004 03:33

PARLIAMENT BiH-HOUSE OF REPRESENTATIVES

BiH HOUSE OF REPRESENTATIVES RECEIVES LETTER FROM INDIRECT TAXATION ADMINISTRATION

SARAJEVO, September 8 (FENA) – Representatives in the BiH House of Representatives received a letter from the Indirect Taxation Administration Steering Board this morning explicitly recommending them to adopt the original draft of the VAT Law sent by the Steering Board to the BiH Council of Ministers and which proposes a uniform VAT rate of 17 percent.

Indirect Taxation Administration Steering Board stated in the letter that the VAT adopted by the House of Representatives’ Finance and Budget Commission, which introduces the combination of a higher rate of 18 percent and a lower rate of 8 percent for certain products, as well as the broad use of a 0 rate, would reduce revenue and cause damage to social programs.

“The only project that can efficiently remove tax fraud and evasion in BiH is the introduction of VAT. However, advantages of VAT reform will be undermined if more that one rate is introduced because management will be made more difficult and chances for fraud and tax evasion increased”, was stated in the letter.

(Fena) jc

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FSA6462: 08.09.2004 03:49

FBiH MINISTRY OF FINANCE - VAT

VRANKIC: VAT CANNOT RESOLVE SOCIAL PROBLEMS

SARAJEVO, September 8 (FENA) – FBiH Finance Minister Dragan Vrankic supports the introduction of a uniform VAT rate in BiH.

Following debates and initiatives for introducing several VAT rates, which are increasingly getting a political dimension and becoming a cheap method in the election campaign, Vrankic explained in a statement to FENA why he supports a uniform VAT rate.

Vrankic said that as a member of the Indirect Taxation Administration Steering Board, which proposed the legislation for a uniform VAT rate, he continues to strongly support this initiative.

He thinks that tax policy should not be expected to resolve social problems because “a reduced rate does not represent an efficient method for helping individuals and families with low income, while on the other hand the introduction of several reduced rates only makes the entire process more complicated and increases the cost of implementing and regularly paying taxes”.

Vrankic warns that the use of reduced rates also causes difficulties in definition and correct classification, which represents a problem both for taxpayers and tax collectors.

- If 80 percent of EU member states decided to introduce a uniform rate, and these are all countries with highly developed tax administrations, then I think that BiH does not have much of an alternative to introducing a uniform VAT rate. Considering all the complexity of the system in the country and the fact that the process of establishing the Indirect Taxation Administration at the BiH level has only begun we need a functional tax system, which will ensure an efficient collection of taxes, while citizens in the most difficult situation will be taken care of through social programs, Minister Vrankic said.

(Fena) jc

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FSA6465: 08.09.2004 03:53

FBiH GOVERNMENT - SESSION

FBiH GOVERNMENT MEETS TOMORROW

SARAJEVO, September 8 (FENA) – The FBiH Government should discuss in Sarajevo tomorrow proposals and initiatives for changing several laws, including the law on the privatisation of companies and the law on taxes on goods and services.

The FBiH Government is also planned to discuss the five-year plan of the “FBiH Railways” and the program of activities of the FBiH Commission on Missing Persons.

The decision on internal redistribution of budget funds to certain ministries and institutions is also on the agenda.

(Fena) jc

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FSA6467: 08.09.2004 04:03

BiH PARLIAMENT - VAT

BiH HOUSE OF REPRESENTATIVES ADOPTS THREE VAT RATES

SARAJEVO, September 8 (FENA) – The BiH House of Representatives adopted today the principles of the draft VAT Law tabled by the House of Representatives’ Finance and Budget Commission proposing differentiated tax rates.

This means that instead of a uniform tax rate of 17 percent three rates will be introduced – a standard, reduced and a 0 rate.

The Commission proposed that the standard rate be set at 18 percent, while the reduced rate of 8 percent and the 0 rate be used for food products, medicine and books. However, the height of the rates has not been finally defined. 15 days have been given for proposing new amendments after which the final rates will be set.

In the meantime the Finance and Budget Commission should meet representatives of the BiH Council of Ministers, Indirect Taxation Administration Steering Board and interested association.

The Indirect Taxation Administration Steering Board sent a letter to the BiH House of Representatives today urging representatives to adopt a uniform VAT rate of 17 percent.

(Fena) jc

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FSA6468: 08.09.2004 04:09

METEOBiH-WEATHER

WEATHER FORECAST

SARAJEVO, September 8 (FENA) – BiH was sunny and warm today.

It will remain sunny tomorrow as well. Morning temperatures are expected between 6 and 18 and between 17 and 26 during the day.

After a cool morning Sarajevo will be sunny and warm during the day. Morning temperature is expected at around 9 and up to 18 during the day.

(Fena) jc

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