CBBH: INTRODUCTION OF THE VAT WILL NOT CAUSE PERMANENT INFLATION
CBBH: INTRODUCTION OF THE VAT WILL NOT CAUSE PERMANENT INFLATION
In the condition of the forthcoming introduction and implementation of the Value Added Tax (VAT), the Central Bank of Bosnia and Herzegovina (CBBH) informs BH citizens that there is none monetary-based reason for the permanent inflation in BH.
The CBBH will continue with the implementation of the existing monetary regime – the Currency Board Arrangement, with the full foreign exchange backing of the local currency. Such monetary policy has made possible low inflation level over the previous years despite all economic problems. Therefore, it can be expected that the prices, after the adjustments at the beginning of the year, will be regulated by the rules of supply and demand, CBBH said.
The forthcoming introduction of the VAT represents one of the most significant economic changes in BH and it will make possible harmonization with tax systems around the Europe.
Implementation of the VAT will bring many positive changes to the BH economy and it will contribute to the better regulation of the market, stimulate investments and reduce illegal activities.
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