CREDI was selected to conduct a research project aimed at enhancing Bosnia and Herzegovina’s tax system. This initiative was part of the Fiscal Reform Activity (FRA) financed by the U.S. Agency for International Development in Bosnia and Herzegovina (USAID-BiH) to support the country’s transition to a more efficient market economy.
Despite progress in refining its tax policies and administration, Bosnia and Herzegovina continued to face challenges related to complex tax arrangements and burdensome direct taxes. The FRA sought to address these issues by modernising the regulatory framework to align with international tax standards and the evolving European tax environment.
Under the guidance of DAI, the implementing partner for USAID-BIH, CREDI conducted thorough research to identify key challenges within the tax environment and offered recommendations for improvement. The research, which took place from June to August 2024, focused on the private sector analysis, tax policies in force, and the operational dynamics of the Tax Administration across all three administrative units. The research project included a survey of companies and focus group discussions with representatives of private companies. The analysis had the main aim of identifying the key challenges faced by the private economic sector and defining areas and recommendations for improving the tax and business environment.