Reduced VAT rate on foods; rise for ‘luxury’ goods
The Bosnian assembly of Republika Srpska has approved a reduction on basic foodstuffs from the reduced VAT rate of 17% to 5%. At the same time, a range of ‘luxury’ goods in the 17% band will be recategorized to the standard 22%. The assembly will also be looking at cutting excise duties on oil, petrol and diesel.
Bosnian’s Serb Republic inflation reached 14.3% in June 2022 from 13.2% in May. prices of transport services rose 34.6% in June and prices of food and non-alcoholic beverages went up 22.6%. The follows the global trend of fast-growth inflation following the ending of COVID lockdowns and the Russian invasion of Ukraine.
Follow our tracker of European VAT cuts to energy, fuel and food.
This may not apply to all of Bosnia as The Dayton peace accord created two highly autonomous entities that share some joint institutions: Republika Srpska and the Bosniak-Croat Federation.
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