The first draft of the Law on Excise Duties seeks to meet the criteria of the European Union, including:
-period of adjustment of taxpayers and ITA to the new rules for excise products, which will be applied by membership in the Union
-a new system of taxation of existing excise products determined by the applicable legislation, and under the prescribed conditions new excise products will be defined:
➡ Solid fuels (coal, coke, lignite)
➡ Natural gas
➡ New tobacco products
This legal solution defined in this way, has advantages and disadvantages.
The good side is that this law would abolish the excise tax on denatured alcohol used in the production and processing of non-food products, for example disinfectant and chemistry products, which are now fully taxed. Last year, the economic profession-Economic Council of the State
The downside of this law is that it announces the introduction of new excises on other products, such as electricity in the economy. It is proposed to exclude the introduction of excise duty on electricity, which is consumed by individuals in their homes. Due to this exception, it is to be expected that the price of electricity in the economic sector will increase.
For now, it is not known whether the collected excise funds will be directed to the new law, e.g. excises on tobacco in the health sector, excises on fuel for road construction, excises on electricity in ecology and the like.
For further information please contact, Ms. Andrea Peulic, Accountant, in our offices in Bosnia & Herzegovina, at email@example.com
“Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & the Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & the Middle East”.