NICHOLL RE-APPOINTED AS HEAD OF BOSNIAN TAXATION AUTHORITY

SARAJEVO, Bosnia (January 9,2007) - The International Community's High Representative in Bosnia Miroslav Lajcak amended yesterday the Law on Indirect Taxation System in Bosnia and re-appointed Peter Nicholl as Head of the Bosnian Indirect Taxation Authority’s Governing Board until 30June 2008.The Bosnian Indirect Taxation Authority’s Governing Board has not yet established a permanent system for the distribution of funds from indirect taxation, Peter Nicholl will continue to assist the Board in finding a permanent methodology for revenue distribution.

Peter Nicholl’s mandate was due to expire on 13 January 2008. So far Bosnia’s most influential political parties have been unable to agree on Peter Nicholl’s successor.

The International Community's High Representative in Bosnia therefore yesterday also amended the Law on Indirect Taxation System to ensure continuous leadership and this institution’s functionality in case there is no agreement on future Governing Board Chairs.

“The law now provides for the Bosnian Finance and Treasury Minister to automatically take on the role of Chair for at least a year if there is no agreement on a new Chair of the Governing Board”, Lajcak said yesterday.

“Functional institutions and a secure base from which to continue to build a common economic space are essential for this country’s future,” Lajcak added.

This six-month extension also allows time for the Indirect Taxation Authority’s Governing Board to establish the administrative capacity necessary for the transition to the Bosnian authorities.