Transcript Bosnia and Herzegovina

Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
INDIRECT
TAXATION AUTHORITY
OF BOSNIA AND HERZEGOVINA
Web address: www.uino.gov.ba
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
31 December 2003
FB&H – two administrations
RS – two administrations
BD – two administrations
Beginning of 2004
The ITA BH was established with
technical assistance of the
CAFAO office and political
support of the OHR
Bosnia and Herzegovina
Indirect Taxation Authority
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
FINAL GOAL OF THE ITA B&H ESTABLISHMENT:
EFFECTIVE TAX ADMINISTRATION
Realized under three sub-gaols:
1. Establishment of the single Indirect Taxation Authority:
Merging of three local customs administrations
2. Collection and allocation of indirect taxes revenues at the state level
(the Single Account)
3. Introduction of value added tax (merging parts of three local tax
administrations)
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
THE ORGANIZATIONAL STRUCTURE OF THE ITA B&H:
The field activities are run by four regional centers in: Sarajevo, Banja Luka,
Mostar and Tuzla, 30 customs sub-offices and 59 customs posts.
Out of that 40 are passenger border crossings, 4 airports, 8 railway border
crossing, 3 overseas mail offices and 4 free zones.
The organizational structure of the ITA B&H consists of five sectors and four
departments comprosing the Office of the Dirctor.
OPERATIOANAL LINES OF RESPONSIBILITY
T – Tax
C – Customs
LE – Law Enforcement
T
C
LE
IT
C
LE
IT
RC
BS
T
T
IT – Information Techonlogy
BS – Business Services
HQ – the headquarters
C
BS
T
Banja
Luka
LE
RC
Mostar
IT
C
IT
BS
IT
BS
RC
Tuzla
HQ
BS
T
LE
ITA
C
LE
RC
Sarajevo
Bosna i Herzegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
LEGAL FRAMEWORK OF THE REFORM ON THE INDIRECT
TAXATION SYSTEM
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•
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Law on Indirect Taxation System of Bosnia and Herzegovina
Law on Indirect Taxation Procedure
Law on Payments on the Single Account and Revenue Allocation
Law on Value Added Tax
Law on Excise Duties
Law on Indirect Taxation Authority
Law on Forced Collection Procedure
Law on Customs Policy of Bosnia and Herzegovina
Law on Customs Tariff
Law on Customs Offences
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
Total collected revenues from indirect taxes for the period 2001-2008
Revenues in the billions of
KM
5
4,5
4
3,5
3
2,5
2
1,5
1
0,5
0
2001.
2002.
2003.
- Befor the ITA establishment
2004.
2005.
2006.
2007.
2008.
- After the ITA establishment
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
Rev enues collected by the Entity administrations
and the ITA B&H
18
16
Indirect taxes revenues in the billions KM
Befor the establishment of the ITA
B&H, the customs and tax
administrations, were gathered by
10.8 billion KM of indirect taxes
revenues for four years, while the
ITA B&H for four years of its work
collected 17 billion KM.
14
12
10
8
6
4
2
0
2001.-2004. Entitetske
administracije
2005.-2008. UINO
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
Causes that have influenced the
reduction in revenues in 2009
SAA – reduction of revenues for 2/3
Revenues in the first four months of 2008/2009
5
4
3
Recession –reduction of revenues for 1/3
S
2
1
1,825
1,595
0
Decrease in imports by 25 % reduced VAT base
4 mj. 2008.
4 mj. 2009
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
REVENUE PER EMPLOYEE
REVENUE PER
EMPLOYEE
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•
•
•
•
•
2003 - 620, 000 KM
2004 - 710, 000 KM
2005 – 1, 089, 000 KM
2006 – 1, 965, 238 KM
2007 – 2, 120, 000 KM
2008 – 2, 161, 403 KM
NUMBER OF
EMPLOYEES
2244
2244
1800
2100
2200
2280
Currently, there are 700 employees less than prescribed by the Book of
Rule on Internal Systematization and actual needs of the ITA B&H. We
have a small number of employees, which is significantly aggravating
factor. Complete ITA B&H has less employees than the customs
adminsitrations of Slvenia and Croatia.
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
RESULTS OF THE ITA B&H FOR THE FIRST FOUR
YEARS OF WORK IN NUMBERS:
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3 MILLION OF PROCESSED CUSTOMS DECLARATIONS
1.5 MILLION OF PROCESSED VAT REPORTS
1,5 BILLION OF VAT REFUNDS TO TAXPAYERS
25 MILLION KM OF SEIZED GOODS
434 REPORTS SUBMITTED TO THE PROSECUTOR OFFICE OF
B&H
Main economic indicators of Bosnia and Herzegovina
INDICATORS
2002
2003
2004
2005
2006
2007
Nominal GDP (billion EUR)
6.6
7.4
8.1
8.7
9.8
11.6
GDP per capita (EUR)
1,958
2,214
2,388
2,561
2,873
3,412
Real GDP growth rate (%)
5.5
3.0
6.3
4.3
6.2
8.0
Growth rate of industrial production
9.2
4.8
9.0
10.0
11.0
10.0
Average net wages in KM
446
484
505
539
586
630
The annual inflation rate (%)
0.4
0.6
0.4
3.7
6.1
4.9
Unemployment rate (%)
40.9
42.0
43.2
31.1
30.0
28.0
Foreign exchange earnings (millions
1,270
1,428
1,779
2,160
2,787
3,420
-3.52
-3.67
-3.68
-4.01
-3.41
-4.14
282
338
567
478
564
1,628
Share of FDI in GDP (%)
4.3
4.6
7.0
5.5
5.8
14.0
Deposits from households in comercial
banks (millions Euros)
829
985
1,273
1,629
2,097
2,641
Population (in millions)
3.35
3.35
3.38
3.38
3.40
3.40
(%)
Euros)
Balance of the commodity exchange
(billion EUR)
Foreing direct investments (millions
Euros)
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
REASONS FOR VAT
Goal:Together with other measures enable Bosnia and Herzegovina the
macroeconomic stability, which will contribute to the stabilization of Bosnia
and Herzegovina in other segments
VAT has led to:
-Stimulation of exports
-Discouragement of imports
-Increase investments
-Creation of fair market competition
-Improvement of revenue collection
-Reduction of the “gray” economy (2,000 of fictitious companies went out of
business)
-Establishment of the unique economic space (45,000 VAT payers under one
roof)
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
PROBLEMS THAT WE RECOGNIZED AND WHAT WE HAVE PROPOSED FOR
THEIR SOLVING
ORGANIZATIONAL ISSUES:
• In addition to existing four regions, introduction of two more regions (Doboj and Bugojno)
• Introduction of nine tax branches (Trebinje, Livno, Zenica, Višegrad, Travnik,
Doboj, Bihać, Bijeljina, Brčko), in order to be closer to VAT payers
LOGISTICAL ISSUES:
•Bad conditions of work (not salaries); we do not have own facilities
PERSONNEL ISSUES:
•At 16,000 VAT payers (according to the entities data), it was planned to be 612 employees in the Tax Sector
•Now we have only 450, and even 45,000 VAT payers.
•We should have a minimum of another 700 employees in order to be able to control each taxpayer at least once
in four years (Except for large taxpayers, who are bring under control every year)
•We are completely powerless in the HRM. The Civil Service Agency employs officers, which is a very long
process and does not guarantee the best staff.
•Impossible to dismiss staff, even the following problems are recognized: 1) corruption; 2) bad work; 3) averse;
4) simulation of sick leave
TECHNICAL ISSUES:
• Introduction of video surveillance
• Introduction of fiscal cash registers
• Introduction of measurment instruments for oil and petroleum products
• Introduction of modern information system (current ASYCUDA is incompatible with the requirments of the
EU)
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
PROPOSALS TO CHANGE THE LEGISLATION
LAW ON EXCISE DUTIES:
Increase of excise on cigarettes (the lowest excise in Europe)
Payment of excise on coffee only during the importation
Introduction of additional excise in the amount of 0.10 KM per liter of fuel for
the construction of motorways
Abolition of excise on alcohol, which is used as reproductive material in some
industries
LAW ON VAT:
Shifting the deadline for payment of liabilities from the 10th to the 15th of the
month
Submission of the gross balance in electronic form at the end of each year
CUSTOMS:
Introduction of simplified customs procedures, which apply in the EU
(licensed exporter, authorized importer, local-home clearance, etc)
Bosna i Hercegovina
Uprava za indirektno-neizravno oporezivanje
Bosnia and Herzegovina
Indirect Taxation Authority
Thank you for
your attention!