Socio-economic measures for the coronavirus crisis in Bosnia and Herzegovina

State level - Bosnia and Herzegovina

  • BiH Council of Ministers passed a decision determining the exemption from calculation and payment of indirect taxes and refund of already paid indirect taxes on equipment and funds donated by domestic and international entities for the prevention, suppression and elimination of the epidemic;
  • On April 1, the BiH Council of Ministers adopted the Information of the Ministry of Foreign Trade and Economic Relations on the joint list of vital products established by the CEFTA Secretariat regarding traffic facilitation due to the crisis caused by the coronavirus. The list of basic products important for the population (meat and meat products, milk and dairy products, vegetables, fruits) will be treated through the so-called a green priority lane for traffic at certain border crossings;
  • On March 19, the Foreign Trade Chamber of BiH informed the interested parties about the possibility of submitting a request for the issuance of a "certificate of force majeure" (lat. Vis Maior), which serves to put out of force, temporarily or permanently, the obligations from the contractual relationship due to objective reasons (weather disasters, energy reductions, earthquakes, etc.), and to enable the company to prove to its business partners the impossibility of fulfilling the contractual obligations for reasons that could not have been foreseen, eliminated or avoided. It is not necessary to obtain a certificate of force majeure for agreements that do not have an international element (agreements concluded in BiH and valid only for the territory of BiH). On April 10, the BiH Foreign Trade Chamber published an Analysis of data on foreign trade between Bosnia and Herzegovina and other countries in the period from January to March 2020 and an analysis of the impact of the pandemic on foreign trade in certain sectors and for certain products. The BiH Foreign Trade Chamber was informed by the CEFTA Secretariat and the Ministry of Foreign Trade and Economic Relations of BiH that on April 10 a list of basic goods was agreed, which is operational for the Green Lane from April 13, and a list of basic goods that have priority over to other goods;

Entity level - BiH Federation

  • The revised budget of the FBiH was adopted in accordance with the new situation.
  • The rent for the use of business premises managed by Service for Joint Affairs of the Institutions and Bodies of FBiH has been reduced by 50% for the month of March, with the possibility to be completely exempted from paying the rent as of 1.4. 2020.
  • Amended Programme of spending funds - Incentive for agriculture, more funds redirected to sowing.
  • An additional BAM 21 million was allocated from the Budget of the Federation of BiH for the fight against coronavirus and made available to the Ministry of Health of the FBiH
  • A special body was established to coordinate activities related to the economy. The Coordination Committee for Economic Stabilisation and Consequences of the Coronavirus Pandemic was established at the 215th session of the Government of the Federation of Bosnia and Herzegovina held on March 19, 2020.
  • At the same 215th session of the Government of the Federation of BiH, the Information on the Programme of Activities of the Government of the FBiH for Stabilisation of the Economy and Remediation of the Consequences of the Coronavirus Pandemic was adopted.
  • The Law on Deadlines and Proceedings in Court Proceedings during the State of Accident on the Territory of the FBiH was sent into parliamentary procedure. The law entered into force on 09.05.2020.
  • The Tax Administration has made a decision to postpone the forced collection through a public sale for the duration of the accident.
  • Deadlines for filing income tax and income tax returns were extended to 30.04.2020 and electronic filing of applications was enabled.
  • An initiative was sent to the state level to relax VAT payment deadlines, as well as for preferential treatment of domestic one.
  • An initiative was launched against international financial institutions to secure emergency support funding in response to COVID-19 in BiH
  • A system for monitoring the effects of the health crisis and recession, as well as the EU framework and guidelines related to state aid, was established, and the need for temporary amendments to the Law was reviewed to ensure a rapid and timely response to the crisis.
  • Borrowing activity with the IMF was initiated in order to ensure budget liquidity and financing measures, and funds were approved by the IMF.
  • BH Telecom provided a free online platform for teaching in primary and secondary schools, for children in a state of social need provided free use of the Internet and the purchase of laptops for children in a state of social need.
  • BH Telecom and Elektroprivreda BiH introduced temporary tolerance measures for delays in payment for their services.
  • BH telecom and Elektroprivreda BiH informed the users about the temporary suspension of disconnection from the system in case of non-payment, during the accident.
  • The line ministries, through regular and intensified activity, ensured uninterrupted supply to the population and the economy. Electricity and gas supply is uninterrupted.
  • Elektroprivreda BiH organised a special way of working to protect workers in thermal power plants, hydropower plants and facilities, and mines, all in order to protect workers' health and maintain a stable system.
  • Data were collected and centralised on the expected effects on business in public enterprises and companies with the participation of the state capital of FBiH with special emphasis on liquidity, export restrictions, employee protection.
  • Data on indicative impact assessments on planned capital investments of public and state-owned enterprises were collected to assess the impact on total GDP.
  • With the FBiH majority-owned post offices, secure models for contactless payment of pensions was developed throughout the FBiH.
  • Sarajevo International Airport took all protection measures and provided support for humanitarian and other activities, and the smooth flow of special interventions related to the movement of population and goods by air.
  • At the 167th emergency session, the Law on Mitigation of Negative Economic Consequences was adopted and sent to the parliamentary procedure, and after its adoption by the FBiH Parliament in both houses, it entered into force on 10 May 2020.
  • A price control system was established for certain products and as a control measure the price was kept at the level of 05.03.2020.
  • At the 218th session held on April 9, 2020, the Government of the Federation of BiH passed a Decision prescribing to companies engaged in wholesale and retail trade in petroleum products a maximum wholesale margin in the absolute amount of 0.06 KM / litre of derivatives and the maximum retail margin in the absolute amount of 0.25 KM / litre of derivatives.
  • The work of inspections on the control of compliance with Government decisions, related to the direct control of prices of certain products, was intensified.
  • The work of inspections on the control of work bans in certain activities was intensified, in order to prevent the gathering of citizens and the spread of infection.
  • Activities were initiated with the Association of Banks and the Banking Agency to establish a regulatory framework and assess the needs and methods of implementation, and an agreement was reached on a moratorium on loans to legal entities and individuals.
  • Federal commodity reserves are ready in case of need for use.
  • Activities carried out on the establishment of a Guarantee Fund which enables the activation of free funds in the banking sector and service the liquidity needs of the economy.
  • The Stabilisation Fund was established, as a separate item within the budget with a programme of expenditures related to mitigation of consequences in the economy.

Source:Vlada FBiH

Entity Level - Republika Srpska

  • Decision on urgent payment of tax refunds and contributions for salary increase in 2019;
  • Decision on temporary deferral of payment of tax liabilities for economic entities (legal and natural persons), which, due measures on prevention of the spread of the coronavirus have difficulties in doing business, and these are as follows:
  • Liabilities based on profit tax, fees for the improvement of public forest functions and fire compensation according to the annual tax return for 2019, which were due for payment by March 31, 2020, were temporarily postponed until 30.06.2020.
  • Liabilities based on income tax according to the annual tax return for income tax for 2019, which were due for payment on March 31, 2020, were temporarily postponed until 30.06.2020.
  • Decision on the three-month moratorium on repayment of principal and interest with extension of the repayment period by three months to legal entities and entrepreneurs, whose funds are placed through financial intermediaries or directly from funds managed by the Investment and Development Bank of Republika Srpska ad Banja Luka, which send a request directly or through a financial intermediary to the Investment and Development Bank of Republika Srpska a.d. Banja Luka.
  • Decision on the manner of settlement of income tax and contributions for March 2020, which were settled from the funds of the Solidarity Fund for special purposes for the remediation of the consequences of the coronavirus.
  • Conclusion on exercising the right to incentive funds for: regression of diesel fuel, milk premium and premium for production of mercantile wheat in 2020, agricultural holdings that did not report to the Tax Administration the obligation to contribute for 2019 and did not settle obligations based on anti-hail protection fee for 2019,
  • Conclusion on the work of customs services, which requires the Indirect Taxation Authority of BiH to organise the work of customs services from 00:00 to 24:00, in order to ensure the smooth flow of goods.
  • Conclusion on non-calculation of default interest, which recommends to all providers of utilities and telecommunications services in Republika Srpska, including IPTV, that when issuing invoices for services for March, April and May 2020 do not charge default interest;
  • Conclusion on deferral of payment of concession fee and rent for the use of agricultural land owned by the Republika Srpska for 2020 for three months from the date of maturity of the contractual obligation;
  • Conclusion on the redirection of IFAD credit funds under the Rural Competitiveness Improvement Project for financing seed packages for the needs of small agricultural holdings;
  • Conclusion on deleting 5,373 beneficiaries from the records of debtors of the Ministry of Agriculture, Forestry and Water Management, based on IFAD credit funds from 1998 and 1999, loans from the Government of Japan from 2000 and EU PHARE credit funds from 1998;
  • Conclusion on regression of domestic seeds selected and produced in the Republika Srpska, namely: domestic corn hybrid, domestic varieties of small grains, domestic soybean seeds, domestic fodder grass seeds and grass-legume mixtures, potatoes and other species in the amount of 50 percent of the retail price.
  • Decision on temporary measures of banks to mitigate the negative economic consequences caused by COVID-19, which, inter alia, refer to the granting of benefits to the bank's clients who are directly or indirectly affected by negative effects;
  • Decision on temporary measures to microcredit organisations for mitigation of negative economic consequences caused by COVID-19, which, inter alia, refers to the granting of benefits to clients of microcredit organisations who are directly or indirectly affected by negative effects.
  • Decree with legal force on the prohibition of causing panic and riots during a state of emergency
  • Decision on the manner of settlement of income tax and contributions for March 2020
  • Decree with legal force on deadlines and actions in administrative procedures and other procedures regulated by special material regulations
  • Decree with legal force on exemption from paying fees for organising games of chance
  • Decree with legal force on tax measures to mitigate the economic consequences of COVID-19
  • Regulation on determining the margin that is applied when forming the prices of petroleum products
  • Decree with legal force on the Solidarity Fund for the Reconstruction of RS
  • Decree with legal forceon amendments to the law on the RS Guarantee Fund
  • Decree with legal forceon the RS Compensation Fund
  • Decreeon the conditions and manner of using tourist vouchers in catering facilities
  • Decision on allocating funds to entities and entrepreneurs to remedy the consequences of the coronavirus pandemic for April 2020

Brcko District of BiH

  • Decision on allocation of funds under the Programme of measures for sanation of damages in economic entities.
  • Subsidy for mitigation of consequences caused by the COVID-19 pandemic in economic entities.

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