Latin American Financial Regulatory Framework Takes Root in Bosnia and Herzegovina
A New Path to Fiscal Reform
The government of Bosnia and Herzegovina is embarking on an ambitious journey to simplify its complex fiscal landscape by implementing a new financial regulatory framework inspired by Latin America’s best practices. The U.S. Agency for International Development (USAID) has launched the Fiscal Reform Activity, aimed at enhancing tax legislation and administration efficiency in the country.
Reducing Tax Compliance Burdens
The activity focuses on reducing the tax compliance burdens and costs for businesses, while aligning Bosnia and Herzegovina’s regulatory framework with international standards. Despite progress in fiscal sector reform, direct taxes remain a challenge due to complex legal and institutional arrangements across tax administrations.
Key Objectives of the Fiscal Reform Activity
- Reduce tax compliance burdens and costs for businesses
- Align the regulatory framework with international standards
- Simplify the legislative framework for direct taxation
- Reduce parafiscal fees
- Implement digital solutions to enhance taxpayer services
Partnerships for Success
The USAID team is working closely with key stakeholders, including:
- Tax Administration in the Republic of Srpska
- Tax Administration in Brcko District
- Ministry of Finance for the Federation of Bosnia and Herzegovina
- Other relevant institutions
Together, they will produce analysis, reports, and recommendations to improve operational efficiency, efficacy, and capacity of tax administrations.
A Brighter Future for Bosnia and Herzegovina
By adopting a Latin American-inspired financial regulatory framework, Bosnia and Herzegovina hopes to create a more business-friendly environment and reduce the high compliance costs that have been holding back economic growth. The success of this project will not only benefit the country but also serve as a model for other countries in the region.
This initiative has the potential to drive positive change and foster economic development, making it an exciting time for Bosnia and Herzegovina’s future.