Republic of Srpska proposes VAT on electric vehicles to be scrapped

Photo: Ismael Marder from Pixabay


December 25, 2020





December 25, 2020




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

Szijjarto No responsible green energy policy without nuclear power electric mobility

Szijjártó: No responsible green energy policy without nuclear power, electric mobility

13 May 2024 - Energy policy has become a hostage of ideological debates and hypocrisy, Hungary's Minister of Foreign Affairs and Trade Péter Szijjártó said at Belgrade Energy Forum

Croatia Airlines made first flights with sustainable aviation fuel

Croatia Airlines completes first flights with sustainable aviation fuel

22 April 2024 - The use of SAF is part of preparations for mandatory use in the European Union, scheduled to start in 2025

eu grants cef afif sustainable transport

EU awards EUR 9 million to four sustainable transport projects in Bulgaria, Greece, Slovenia

18 April 2024 - The EU has awarded EUR 424 million to 42 sustainable transport projects including one in Bulgaria, two in Slovenia, and one in Greece

eu ev charging points chargers targets transport environment

EU triples number of EV chargers in three years

18 April 2024 - The EU has recorded a threefold increase in the number of electric vehicle public chargers, according to T&E's new analysis