The Kosovo government has to immediately revoke the decisions to increase the tax on goods from Serbia and Bosnia and Herzegovina, the European Union High Representative for Foreign Affairs and Security Policy, Federica Mogherini, said on Wednesday.

“Today’s decision of the Kosovo Government to increase the tax on goods from Serbia and Bosnia and Herzegovina to 100% is a clear violation of the Central European Free Trade Agreement (CEFTA) and of the spirit of the Stabilisation and Association Agreement between the European Union an Kosovo,” Mogherini said on Wednesday.

Pristina authorities increased on Wednesday the import customs duties for goods from Bosnia and Serbia by 100percent, after earlier this month they raised the taxes by 10percent.

While the Kosovo Government explained that the decision was aimed to strengthen the domestic production and economy of Kosovo, the officials of Bosnia and Serbia stressed it was a direct breach of the CEFTA regulations.

“It further exacerbates the situation following the initial imposition of 10% tax increase last week,” Mogherini said.

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