Social liberals in Bosnia and Herzegovina have moved to abolish gambling’s VAT exemption in 2026.
Representatives of the Our Party political power have put forward a proposal for a “fair and responsible” taxation of the gambling sector that puts money back into the social structures of the Balkan nation.
The proposal was tabled by Mia Karamehić Abazović, an MP in the House of Representatives of Bosnia and Herzegovina’s Parliamentary Assembly, and her colleague Amir Purić, who currently sits in the Parliament of the Federation of Bosnia and Herzegovina (FBiH).
“Today, games of chance are the only legal activity that creates addiction…and is not taxed at the state level,” Abazović said, according to local news outlet N1. “Alcohol and tobacco products, on the other hand, are taxed with both excise taxes and VAT precisely because of the harmful consequences they have on citizens’ health.”
The MP further stated that there are currently no monetary, legal or social grounds for gambling to be enjoying more favourable tax conditions than other sectors of significantly higher value for citizens, such as food, medicine, and books.
Extra funds can boost healthcare system
Purić, on the other hand, expanded the proposal by asking for amendments to the Gambling Act of the FBiH, which would see more money syphoned into healthcare. He argued that the FBiH – one of three autonomous regions forming Bosnia and Herzegovina – gets less than KM 35m (£15.6m) in annual revenue from a sector that makes KM 1.8bn per year.
“The proposed amendments increase that amount to at least KM 150m annually for the Federation, with an additional KM 50m for local communities. This is a matter of elementary fiscal fairness,” Purić added.
According to the MP, the extra funds collected will help strengthen support for oncology patients and treatment of serious and rare diseases, aid against compulsive behaviour, help with the purchasing of vital medical equipment, and boost other areas like science, cultures, sports, and entrepreneurship.
Interestingly, another proposal was tabled in the FBiH last year by Dennis Gratz, a Bosnian MP from the Democratic Front party, who outlined a clear vision on how gambling taxes should be distributed – with 60% of the tax income going into FBiH’s treasury, 20% for social initiatives, and 20% for specialised healthcare treatment. No developments have been made on that front.
At the latest press conference, both Purić and Abazović were quick to shoot down any comments about their proposals being populist, adding: “Citizens very clearly recognise the extent of the problems that games of chance produce and demand adequate taxation of this activity.
“Calling such proposals populism most often is a substitute for a lack of arguments and comes precisely from political circles close to betting lobbies.”