SARAJEVO, Aug 9 (Hina) - The system of dual taxing as was in force until recently in Bosnia-Herzegovina directly prevented its economic development and repelled foreign investors. Its abolition could represent the first significant
step on the path to the economic revival of the entire country, High Representative to Bosnia Paddy Ashdown estimated on Friday.
SARAJEVO, Aug 9 (Hina) - The system of dual taxing as was in force
until recently in Bosnia-Herzegovina directly prevented its
economic development and repelled foreign investors. Its abolition
could represent the first significant step on the path to the
economic revival of the entire country, High Representative to
Bosnia Paddy Ashdown estimated on Friday. #L#
During a meeting with state and entity finance ministers in
Sarajevo, Ashdown also pointed out that, of the numerous economists
he had spoken to, he heard countless examples that prove that it is
much harder to export goods in the country from one entity to the
other than abroad. He warned that something needed to be rapidly
changed in this regard.
In keeping with an agreement that came into force in July, excise
duty on high tariff goods in Bosnia would now be paid only once
within the entity in which the goods are consumed.
Until now excise on all goods was paid twice, once in the place of
production or place of import and the second time at the sale's
point.
Because of this legislative practise marked by the division of the
tax system in Bosnia along the ethnic boundary-line, international
companies such as Coca-Cola - with a large filling plant near
Sarajevo - threatened to withdraw from that country.
(hina) ms