SUPPORT FOR INITIATIVE TO EXEMPT LOCAL COMMUNITIES FROM PAYING VAT

SARAJEVO, AUGUST 27 /SRNA/ - The Minister of Foreign Trade and Economic Relations in the Council of Ministers Staša Košarac supported the initiative of local communities in Republika Srpska that municipalities and cities which are founders of free zones and which invest significant funds and resources into them, be exempted from paying VAT, as is the case with the users of free zones.

"This is a justified and useful initiative, because local communities that establish free zones simultaneously take responsibility for their development and invest in creating conditions for new investments, production, and employment. Therefore, it is important that institutions act as their partners and that solutions are found that will further facilitate their operations and accelerate the development of free zones," believes Košarac.

He expressed his belief that the Ministry of Economy and Entrepreneurship of Republika Srpska will consolidate the initiatives of local communities as soon as possible and forward a proposal to the Ministry of Foreign Trade and Economic Relations, so that this request can be submitted to the Indirect Taxation Authority of BiH.

"I am proud of the fact that in the previous period we established three free zones in Republika Srpska - in Trebinje, Gradiška, and Brod. I will remind you that until 2019, we had four free zones and that all of them were located in the Federation of BiH," Košarac wrote on Instagram.

He claims that there is potential for Republika Srpska to get free zones in other local communities as well, primarily in Bijeljina, given the interest of Semberija's business community.

"Our goal is clear – more investments, more production, more jobs, and a stronger domestic economy. All initiatives that lead to that goal deserve full institutional support," Košarac stated.