SAROVIC: SUSPENSION OF CUSTOMS DUTIES IN RESPECT OF IMPORT OF ELECTRIC VEHICLES

The Ministry of Foreign Trade and Economic Relations of BiH prepared a Proposal for a Decision on Temporary Suspension and Reduction in the Rate of Duty on the Import of New Vehicles by 31^st December, 2019 which aims to reduce taxation and create a better regulatory framework for the import of new and, in particular, electric vehicles.

Minister Mirko Sarovic referred this Decision to the process of public consultations in order to engage professional and wider public in making adequte legislationso that Bosnia and Herzegovina can respond more efficiently to the rapid changes that are taking place in the world market where the number of electric vehicles is doubled from year to year. Nearly a million electric vehicles are sold annually in the world, while in our country, according to the latest records, only 18 have been registered.

Applying a more favorable rate of duty will stimulate the import of new vehicles, which will mean multiple benefits both in terms of reducing air pollution and environmental protection as well as from the aspect of raising the level of traffic safety. The Decision contributes to the equalization of market conditions for all importers and distributors in BiH, regardless of where the vehicles which they are represented are produced.

By this Decision, the rates of duty applied when importing new-produced vehicles in BiH are also harmonized with the rates of duty applied in the region during the import of these products.

The Decision on Temporary Suspension and Reduction in the Rate of Duty on the Import of New Vehicles proposes that the rate of duty on imported new-produced vehicles, which do not have the preferential status of goods from countries with which Bosnia and Herzegovina has concluded free trade agreements, is reduced from the previous 15% to 5% for petrol, diesel and hybrid vehicles, and from 5% to 0% for electric vehicles.

A complete Proposal of the Decision can be downloaded using the link: https://ekonsultacije.gov.ba/consultations .