"We have not accepted Terzic's request for resignation. We support his work and efforts made by the Council of Ministers to implement reforms," Tihic said after a session of the presidency in Sarajevo.
The decision on dismissing Terzic's request was made after officials of all political parties which make up the ruling majority, except for one, expressed support to Terzic at consultations held on Tuesday.
Tihic declined to say explicitly which party had "expressed reservations" about Terzic, but judging from statements made by politicians yesterday it was evident that this was the Party for Bosnia-Herzegovina (SBiH), whose strings are pulled by Haris Silajdzic. The formal leader of the party, Safet Halilovic, who is also the state minister for civil affairs, said yesterday that the support of the SBiH to Terzic was conditional on whether he would carry out reforms and on the nature of those reforms.
Tihic indirectly confirmed today that leaders of other parties in the ruling coalition were dissatisfied with such conduct of the SBiH which might lead to a government reshuffle.
In case the SBiH joins the ranks of the opposition, the remaining four parties in the coalition will still have a majority of seats in the national parliament.
Terzic last week asked to step down after his proposal for a single VAT rate had not been adopted. Instead, the House of Representatives passed a law envisaging two VAT rates. The adopted changes to the previous government-sponsored draft were proposed by the SBiH and the SDA party, whose member is Terzic. The adoption of the new law prompted Terzic to offer resignation as he interpreted the developments in the lower house as lack of confidence in him.
Tihic, who is also a member of the Party of Democratic Action (SDA), said today that the text of the said law would be improved, meaning that MPs from other parties in the House of Peoples (the upper house) would vote for the single 17-percent VAT rate.
The opposition is strongly against the 17-percent VAT rate being levied on basic food items as they believe this would undermine the social position of the poorest citizens.