Bosnia’s Finance Minister Vjekoslav Bevanda said the Head of the EBRD asked why the Law on Excise Tax was adopted if the funds collected via the implementation of the Law cannot be divided and used. He said the agreement must be made between the Republika Srpska and the Federation of Bosnia and Herzegovina entities.
“We have an absurd situation where we fought over the Law on Excise Tax for two years and now we can’t agree on the manner of division of the funds collected by this Law,” Bevanda told the press.
He said that the European Bank for Reconstruction and Development (EBRD) requested a meeting be held Wednesday because the Head of the EBRD came all the way from London to ask why the Law was adopted in the first place if the funds resulting from its implementation cannot be used.
Bevanda added that this question must be resolved by an agreement between the governments of the Republika Srpska and the Federation of Bosnia and Herzegovina entities.
He confirmed that both Bosnian entities will face problems if they do not use the said funds for the construction of roads and highways.
"Entity loan obligations are approaching their due date and public utility companies in charge of road-construction are not able to repay these loans," Bevanda explained.