Alina Iancu, head of the International Monetary Fund’s mission to Bosnia and Herzegovina, asked for an urgent meeting with Prime Minister Zoran Tegeltija to discuss the “implications of Republika Srpska’s (Serb entity, RS) withdrawal from the Indirect Tax Authority.”
In a letter, Iancu expressed concern over the plans of RS to withdraw from the Indirect Tax Authority, which she stressed is “the most significant source of incomes” for Republika Srpska, as well as the Bosniak-Croat Federation (FBiH) entity and Brčko District, N1 reported.
“Leaving aside the problems we are not in the position to speak about, we believe that withdrawal of Republika Srpska from the Indirect Tax Administration would leave huge economic consequences for all,” reads the letter.
“We would like to specifically talk about how the servicing of BiH’s external debt be ensured, including the debt towards the IMF, in case of the dismantling of the Indirect Tax Authority or if the institution is deprived of the VAT collection,” said the letter.
(Željko Trkanjec | EURACTIV.hr)