Tax debt in Bosnia and Herzegovina remains one of the country’s biggest economic problems, and the latest data from the Indirect Taxation Administration (ITA) highlight the scale of the crisis: 49 companies each owe over one million BAM in VAT and excise duties.
Sarajevo’s GRAS tops the list, with a debt of over 29.7 million BAM, followed by the “Kreka” Coal Mine Tuzla, which owes more than 23.3 million BAM. The largest debtors include both private companies and public enterprises, further complicating the situation.
The total debt of the largest taxpayers in the Federation of Bosnia and Herzegovina has exceeded 2.7 billion BAM, while the ITA is seeking hundreds of millions of BAM at the state level from more than 1,300 companies.
Public Enterprises among the Top Debtors
The list shows that public enterprises and state-related companies dominate among the top debtors.
In addition to GRAS and “Kreka,” the top of the list also includes: Bosmal Sarajevo (14.8 million BAM), Radio-Television of Bosnia and Herzegovina (7.4 million BAM), Monter & Co Bijeljina (7.6 million BAM), and Hisar Trade Brčko (over 7 million BAM).
Uncollectible Debts
Economic experts warn that a significant number of these debts are practically uncollectable because many companies on the list are in bankruptcy, have blocked accounts, lack assets, or their owners are outside of Bosnia and Herzegovina. This means the debts exist only on paper.
Foreign Companies among Debtors: Millions beyond the Country’s Reach
Foreign-owned companies that owe millions pose particular problems. Six such companies owe around 10.5 million BAM, including FlyBosnia – 3.01 million BAM (Bosnia and Herzegovina/Saudi Arabia), Bioil Doboj – 2.67 million BAM (Turkey), Petrona Trade – 1.98 million BAM (Switzerland), NAPCO Beds Factory – 1.12 million BAM (Netherlands), KPA Unicon (Finland) – around 925 thousand BAM, and Al-Dihani – around 765 thousand BAM (Kuwait).
Many of these companies have shut down or are no longer operating, which further complicates debt collection.
How Debt Becomes Uncollectable
According to data from the Indirect Taxation Administration of Bosnia and Herzegovina, the problem arises because foreign companies often leave Bosnia and Herzegovina, have no assets, or formally have representatives who are not legal debtors.
“In the enforced collection procedure we often get information that founders left Bosnia and Herzegovina. Since that moment the possibility of collection is minimal,” said the ITA previously told Radio Free Europe (RSE).
In such cases, the country is left with no means of collection.
While debts pile up, budgets lose revenues which should be invested in healthcare, infrastructure, and social benefits.
In practice, that means that the burden of financing the state fallson the citizens, workers, and small business owners.
A System without Answers
Although debtor lists are regularly published, the key issue remains the lack of effective collection. Without stronger control mechanisms and accountability, debts will continue to grow, and some money will remain uncollected indefinitely.
In a country where dozens of companies owe millions, the question is not who owes, but why these debts have not been collected for years.
A complete list of debtors for VAT and excise duties can be found at this link.
