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Reading: “Abolishing the Unified indirect Tax System would be economically disastrous for RS“
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Sarajevo Times > Blog > BUSINESS > “Abolishing the Unified indirect Tax System would be economically disastrous for RS“
BUSINESS

“Abolishing the Unified indirect Tax System would be economically disastrous for RS“

Published: August 26, 2025
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Deputy Minister of Finance and Treasury of Bosnia and Herzegovina, Muhamed Hasanović, stated that the increasingly frequent statements that challenge the constitutional order and the unified system of indirect taxation are dangerous and unfounded, and presented clear data on the functioning of that system.

According to official data from the Indirect Taxation Administration, a total of 11,393,488,043.79 KM was collected in 2024. Of this, the Federation of BiH collected 8,316,108,862.53 KM (72.99 percent), the Republika Srpska 2,870,929,353.63 KM (25.2 percent), and the Brčko District 206,449,827.63 KM (1.81 percent).

Hasanović emphasized that these data confirm that the largest part of revenues is collected in the Federation of BiH, while the distribution of revenues from indirect taxes ensures the financial sustainability of all entities and the Brčko District. He warned that the abolition of the single indirect taxation system would have serious consequences for the stability of the budgets of all levels of government, the payment of salaries in institutions, and overall economic stability.

“Let me be completely clear: the abolition of the single indirect taxation system would be economically disastrous for Republika Srpska. The Federation would benefit in that scenario, but the policy I advocate will never be based on secessionism, destabilization or the destruction of the institutions of Bosnia and Herzegovina,” said Hasanović.

He emphasized that the indirect taxation system must remain indivisible, because it represents the foundation of fiscal stability and equal legal protection for all citizens and economic entities in BiH.

“Instead of serving irresponsible and populist statements to the public, all those who wish Bosnia and Herzegovina well should work on strengthening state institutions and mechanisms that ensure stability, equality and fair distribution of income. This is both a political and economic necessity, and at the same time a legal obligation under the Constitution of Bosnia and Herzegovina,” stated Hasanović, according to a statement from the Office of the Deputy Minister of Finance and Treasury of BiH.

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