The EU Delegation to BiH sent a letter to the President of the Council of Ministers of BiH, Nikola Spiric, the Minister of Civil Affairs, Sredoje Novic, and the Director of the Indirect Taxation Authority of BiH, Kemal Causevic, protesting against the ITA practice of charging VAT on NGO or bank transfers that are donations for demining actions in BiH, it was reported by “Fokus”.
It was stated that letters, dated the 2 and 31 July and the 16 October 2009, emphasised that the EU has donated significant funds for demining actions in BiH.
“That support was channelled through grants to major NGOs: “STOP Mines” and “Demira” along with their partners “BH Demining”, “Pro Vita” and “UEM”. Unfortunately, the decision by ITA to charge VAT on those bank transfers has resulted in adverse consequences for those organisations and the demining programme”, as written in a letter. Some of the NGOs went bankrupted and demining activities were decreased in order to pay VAT.
“Fokus” reported that the letter emphasised the strong protest that the EU Delegation made against the ITA actions and the Delegation encourages the ITA to cancel their decisions.
“If not, the EU Delegation will be forced to suspend all current and future support to this sector, which could result in irretrievable damage to the security and development of the country”, was the key message contained in the letter.
The President of the Management Board of the Indirect Taxation Authority of BiH and the Minister of Finance and Treasury of BiH, Dragan Vrankic, said to “Fokus” that he still does not possess all relevant information and therefore could not comment on the subject. The ITA spokesman, Ratko Kovacevic, said that the ITA expects to receive this letter.
Source: SRNA