NGOs Warn of Negative Effects of VAT

26 July 2006

�Merhamet�, �Dobrotvor�, La Benovalencija and �Caritas� non-governmental organizations believe that Bosnia and Herzegovina has entered a situation they long warned would happen, regarding the collection of VAT and redistribution of funds.

The humanitarian organizations remind the public that, as of past Friday, when the VAT collected funds were unblocked, the accounts of the Bureau of Indirect Taxing hold some 210 million KM.

�Our warnings to state, entity and other authorities, as well as the international factors, aimed to protect the most vulnerable categories of population�, say the organizations in a joint statement.

�We don�t want to repeat the numbers of people that wait in front of soup-kitchens for their daily meal, how many need help to purchase the necessary medication, while Peter Nichol, Chair of the Board of the Bureau of Indirect Taxing seeks modes to redistribute these 210 million among entities, Brcko District, cantons and municipalities�, adds the statement.

The four organizations reminded the authorities that, were their warnings and suggestions accepted, the funds would not just pile up to result, ultimately, in a blocked account.

�We hope that the competent bodies of the Parliament will act sooner with an efficient public reaction�, conclude the four humanitarian organizations.