Ljubuski joins the exclusive club of Digital Tax-Free cities in Bosnia and Herzegovina (BiH), becoming the second city in the country, after Travnik, to enjoy this status. There are numerous benefits that this concept brings to citizens, and it is one of the key steps towards modernizing the business environment and public administration in BiH.
“As was the case in Travnik, the implementation of the Digital Tax-Free model in Ljubuski will allow individuals to register their businesses online with minimal administration, using just three documents, all within 24 hours. This simplicity and speed, along with the additional benefit that the business registration fee is waived, make the Digital Tax-Free model particularly attractive to entrepreneurs,” says Faruk Hadzic, Ph.D. in Economics and a macroeconomic analyst, who served as a consultant on this project to successfully implement all Digital Tax-Free concepts.
Attracting investors is one of the Digital Tax-Free model’s advantages
In Travnik, he notes, that this concept has already yielded positive results, attracting new investors and facilitating business operations for domestic entities. Now, Ljubuski is following the same path, clearly showing that cities and municipalities in BiH recognize the need for modernization and adapting to contemporary trends.
“The success of such projects is inextricably linked to the cooperation between local authorities and IT experts. In the case of Ljubuski, young IT specialist Jasmin Muslimovic played a key role in the technical preparation and realization of the project, enabling the local administration to adapt to the needs of the digital age. Such collaboration not only enhances the services provided by public administration but also directly contributes to attracting investments and improving the quality of life for citizens,” Hadzic explains.
When asked which other municipalities or cities might follow the example of Travnik and Ljubuski, Hadzic points out:
Travnik is preparing for a “Digital Oasis”
“Municipalities that have already shown interest in modernizing their services, such as Tesanj and Mostar, could be the next to adopt the Digital Tax-Free concept. Additionally, smaller communities like Gorazde, Cazin, or Capljina, which want to attract new investors and facilitate business for existing entities, could also be excellent candidates for this model. The key is that local authorities are open to change and willing to collaborate with experts to successfully implement such projects.”
The fact that Travnik was the first city in BiH to embrace digitalization is not surprising, given that this city does not “rest” when it comes to modernizing its services and keeping up with global trends. While Ljubuski is implementing the Digital Tax-Free model, Travnik is preparing for another major step – the Digital Oasis Travnik project, which will be realized in November 2024. This concept of digitalization will elevate services to a completely new level, allowing citizens to access public services through an application that will enable them to digitally pay bills for public utilities, and parking, register legal entities and businesses, monitor air and water pollution in real-time, and receive necessary documents from the municipality directly to their home address.
“It is particularly significant that this project will facilitate access to services for citizens in the diaspora. They will no longer have to come to the country or wait in lines to obtain necessary documents; instead, they will be able to order them online and receive them at their address abroad. This innovation is crucial for improving relations between the local community and citizens in the diaspora, allowing them to remain, active members of society, even when physically distant,” Hadzic explains, adding that the digitalization of public administration through projects like Digital Tax-Free and Digital Oasis Travnik demonstrates that BiH has the capacity and vision to become a leader in the region when it comes to modernizing public services and the business environment.
