Bosnia's Indirect Taxation Authority (ITA BiH) Management Board damaged the Federation o Bosnia and Herzegovina (FBiH) entity by as much as BAM 32 million (around EUR 16 million) with its decision on the temporary distribution of revenues from excise taxes for the construction and reconstruction of roads and highways, FBiH Prime Minister said.

According to Fadil Novalic, the FBiH Government adopted a number of conclusions requesting that the ITA BiH submits a report on the payment and distribution of revenues as well as an analysis on previous payments of excise tax revenues to the Government of FBiH.

“Based on these indicators, the Government will receive information on the relations between the paid and distributed revenues and the realized final consumption, because the ITA BiH violated two laws, namely the Law on Payments to the Single Account and Distribution of Revenues and the Law on the Indirect Taxation System in Bosnia and Herzegovina,” Novalic said.

The Prime Minister stated that these two laws stipulate that the Management Board will adopt a methodology according to which excise tax revenues should be distributed and paid, instead of doing so based on a temporary decision on the disribution of revenues.