Bosnian Prime Minister Adnan Terzic has offered his resignation in a dispute over the country's new value-added tax law.

The Bosnian leader acted after lawmakers late Thursday, adopted legislation providing for a zero value-added tax on such products as bread and milk, and a 17 percent tax on everything else. Mr. Terzic had sought a single 17 percent rate on all products .

The members of Bosnia's collective presidency, made up of representatives of the country's Croat, Muslim and Serb communities, must now decide whether to accept or reject the prime minister's action.

Some information for this report provided by AP, AFP and Reuters.