Mobility

Republic of Srpska proposes VAT on electric vehicles to be scrapped

Photo: Ismael Marder from Pixabay

Published

December 25, 2020

Comments

0

Share

Published:

December 25, 2020

Comments:

0

Share

In order to reduce air pollution from traffic, the Ministry of Energy and Mining of the Republic of Srpska has proposed the abolition of the value-added tax on the import of electric vehicles.

The Ministry of Energy and Mining of the Republic Srpska sent an initiative to the Indirect Taxation Authority of Bosnia and Herzegovina to amend the Law on Value Added Tax in the part related to the taxation of new motor vehicles and proposed the introduction of VAT exemption on imports of electric vehicles (EV).

The Republic of Srpska is one of the two entities of the BiH. VAT on vehicle imports is 17%.

With the new Law on Electricity, RS has introduced the activity of charging electric vehicles

According to the ministry, the proposition is part of the activities on the implementation of the Law on Electricity. The Republic of Srpska was the first in BiH to define the use of electric vehicles. The law has introduced the service for charging electric vehicles and defined the minimum technical requirements for chargers.

So far, about 30 charging stations have been put into operation in BiH, and currently the number of electric vehicles is small and there are no incentives for their purchase and use.

An initiative similar to the one launched by Srpska’s Ministry of Mining and Energy was launched at the beginning of 2019 by the Ministry of Foreign Trade and Economic Relations of BiH, which proposed the abolition of import duties on electric vehicles. However, the 5% levy remained.

Đokić: I expect the proposal to be accepted

Mining and Energy Minister Petar Đokić said the developed countries of Western Europe are strongly promoting the use of electricity in the transport sector in order to reduce emissions and protect the environment. Among the measures to promote EVs, they have introduced different types of tax exemptions and other incentives.

RS wants to give its contribution because a significant increase in the number of electric vehicles cannot be expected if incentive measures are not introduced, said Đokić, adding that he expects the proposal to abolish VAT to be accepted.

He asserted such measures are necessary due to BiH’s international obligations regarding the reduction of emissions and for a responsible stance towards the health of the population and the environment.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

EU agrees fossil fuel car ban as climate package talks are starting

EU agrees fossil fuel car ban as climate package talks are starting

29 June 2022 - The Council of the EU and European Parliament are set for talks on the Fit-for-55 package. Both agree new combustion engines should be banned by 2035.

EU Alliance for Zero Emission Aviationhydrogen electrification

EU’s Alliance for Zero Emission Aviation to work on hydrogen, electrification

27 June 2022 - The EU said the Alliance for Zero Emission Aviation would accelerate the development of electric and hydrogen-powered aircraft

European Parliament delays decision carbon border tax CBAM

European Parliament delays decision to introduce carbon border tax – CBAM

08 June 2022 - The European Parliament rejected a set of law proposals within the Fit-for-55 climate package including the CBAM carbon border tax scheme

Priority new Government Slovenia energy crisis

Priority of new Government of Slovenia is to tackle energy crisis

06 June 2022 - Prime Minister Robert Golob promised everyone would take their fair share of the burden from rising food and energy prices