INDIRECT TAXATION AUTHORITY OF BOSNIA AND HERZEGOVINA Bosna i Hercegovina Bosnia and Herzegovina Uprava za indirektno-neizravno oporezivanje Indirect Taxation Authority Web address: www.uino.gov.ba
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Slide 1
INDIRECT TAXATION AUTHORITY OF BOSNIA AND HERZEGOVINA Bosna i
Hercegovina Bosnia and Herzegovina Uprava za indirektno-neizravno
oporezivanje Indirect Taxation Authority Web address:
www.uino.gov.ba
Slide 2
Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority 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
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje 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)
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje 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.
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OPERATIOANAL LINES OF RESPONSIBILITY HQ ITA TLEITBSC R C
Sarajevo TLEITBSC R C Mostar TLEITBSC R C Tuzla TLEITBSC R C Banja
Luka TLEITBSC T Tax C Customs LE Law Enforcement IT Information
Techonlogy BS Business Services HQ the headquarters
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Bosna i Herzegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority LEGAL
FRAMEWORK OF THE REFORM ON THE INDIRECT TAXATION SYSTEM 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
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority
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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.
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority
Causes that have influenced the reduction in revenues in 2009 SAA
reduction of revenues for 2/3 Recession reduction of revenues for
1/3 Decrease in imports by 25 % - reduced VAT base
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority
REVENUE PER EMPLOYEE REVENUE PER NUMBER OF EMPLOYEE EMPLOYEES 2003
- 620, 000 KM 2244 2004 - 710, 000 KM 2244 2005 1, 089, 000 KM 1800
2006 1, 965, 238 KM 2100 2007 2, 120, 000 KM 2200 2008 2, 161, 403
KM 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.
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority
RESULTS OF THE ITA B&H FOR THE FIRST FOUR YEARS OF WORK IN
NUMBERS: 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
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Main economic indicators of Bosnia and Herzegovina
INDICATORS200220032004200520062007 Nominal GDP (billion EUR)
6.67.48.18.79.811.6 GDP per capita (EUR)
1,9582,2142,3882,5612,8733,412 Real GDP growth rate (%)
5.53.06.34.36.28.0 Growth rate of industrial production (%)
9.24.89.010.011.010.0 Average net wages in KM446484505539586630 The
annual inflation rate (%) 0.40.60.43.76.14.9 Unemployment rate (%)
40.942.043.231.130.028.0 Foreign exchange earnings (millions Euros)
1,2701,4281,7792,1602,7873,420 Balance of the commodity exchange
(billion EUR) -3.52-3.67-3.68-4.01-3.41-4.14 Foreing direct
investments (millions Euros) 2823385674785641,628 Share of FDI in
GDP (%) 4.34.67.05.55.814.0 Deposits from households in comercial
banks (millions Euros) 8299851,2731,6292,0972,641 Population (in
millions) 3.35 3.38 3.40
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje 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)
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje 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,
Viegrad, Travnik, Doboj, Biha, Bijeljina, Brko), 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)
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje 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)
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Bosna i Hercegovina Bosnia and Herzegovina Uprava za
indirektno-neizravno oporezivanje Indirect Taxation Authority Thank
you for your attention!