Core Insights - Bosnia and Herzegovina's indirect tax revenue is projected to reach 12.177 billion marks in 2025, marking a year-on-year increase of 633 million marks, or 5.51%, setting a historical record [1] - The growth in tax revenue is primarily driven by inflation and the scale of imports, with actual net revenue distributed to various governmental entities amounting to 9.974 billion marks, an increase of 525 million marks year-on-year [1] Group 1 - The increase in indirect tax revenue is directly related to the growth in transaction volumes and values, driven by rising wages and remittances that boost consumption [2] - Inflation has significantly impacted the growth of indirect tax revenues, particularly through increased value-added tax and consumption tax [2] - A substantial portion of the revenue growth is attributed to product imports, which does not incentivize domestic production, highlighting a reliance on borrowing in both private and public sectors [2] Group 2 - The growth in indirect taxes is mainly due to inflation, with minimal contribution from economic activity itself, leading to a heavier tax burden on citizens without visible improvements in public services [3] - There is a concern that the increase in indirect taxes has not resulted in a decrease in direct taxes, and government spending continues to expand without restraint, exacerbating debt levels [3] - The current economic model heavily relies on remittances from abroad, particularly from EU countries, indicating a need for a shift towards increasing the share of direct taxes in public revenue [2][3]

Core Insights - The total indirect tax revenue in Bosnia and Herzegovina for the first 11 months of the year reached 11.71 billion marks, an increase of 574 million marks or 5.46% year-on-year [1] Group 1: Tax Revenue - The net revenue collected during January to November amounted to 9.67 billion marks, which is an increase of 470 million marks compared to the same period last year [1] - The distribution of the collected revenue includes 924 million marks to national institutions, 5.2 billion marks to the Federation of Bosnia and Herzegovina, 2.8 billion marks to the Republika Srpska, and 28.1 million marks to the Brčko District [1] Group 2: Special Fees - Special toll fees for highway construction and road improvements generated an additional 230 million marks for the Federation of Bosnia and Herzegovina, 152 million marks for the Republika Srpska, and 700 thousand marks for the Brčko District [1]

Core Insights - Bosnia's indirect tax revenue for the first ten months of the year reached 100.88 billion marks, an increase of 5.44 billion marks compared to the same period last year, representing a growth rate of 5.7% [1] - The net distributable income after VAT refunds of 18.22 billion marks was 82.65 billion marks, showing a year-on-year increase of 5.71% [1] Revenue Distribution - National institutions received 8.41 billion marks, while the Federation of Bosnia received 45.65 billion marks, the Republika Srpska received 25.57 billion marks, and the Brčko District received 2.56 billion marks [1] - In terms of highway tolls and fuel surcharges, the Federation of Bosnia collected 2.07 billion marks, the Republika Srpska collected 1.37 billion marks, and the Brčko District collected 700 million marks [1] - The remaining portion is retained as reserve funds in the special road surcharge account [1]

Core Insights - Bosnia's indirect tax revenue for the first eight months of 2025 reached 78.86 billion marks, representing a year-on-year increase of 5.1% compared to 2024 [1] Tax Revenue Details - The indirect tax revenue increased by 3.83 billion marks from 75.03 billion marks in the same period of 2024 [1] - In August alone, the tax collection amounted to 10.36 billion marks, which is an increase of 280 million marks year-on-year [1] VAT Refunds and Net Revenue - During this period, the tax authority refunded 14.46 billion marks in value-added tax [1] - The net tax revenue distributed to the state, entities, and Brčko District totaled 64.4 billion marks, which is a 4.8% increase from the previous year [1] Fund Allocation - Of the total revenue, 6.62 billion marks were allocated for the operation of state institutions [1] - The distribution included 35.5 billion marks to the Federation of Bosnia and Herzegovina, 19.89 billion marks to the Republika Srpska, and 1.99 billion marks to the Brčko District [1] - Additionally, special road construction fees generated 1.61 billion marks for the Federation, 1.07 billion marks for the Republika Srpska, and 500 thousand marks for the Brčko District, with remaining funds deposited into a special road construction reserve account [1]