What are the Opinions of Tax Administration Officials Regarding Tax Policy Reforms in Bosnia and Herzegovina?

  • Lejla LAZOVIC - PITA Assistant professor, Bosnia and Herzegovina
  • Ana ŠTAMBUK Assistant professor, Croatia


The aim of this paper is to assess tax administration reforms in Bosnia and Herzegovina (BandH). After analyzing the three important preconditions for a successful tax administration reform in any (post transition) country which are all related to tax policy reform, namely, simplification of a tax system, a clear strategy and political commitment from the highest authorities, we firstly evaluated the success of tax policy reforms conducted in BandH so far. We conclude that all tax policy reforms in BandH were conducted inconsistently which is a result of a complex constitutional and political organization of BandH. Since the success of tax administration reforms relies on clear tax policy reforms, we assess the implementation of the tax policy reforms through a survey conducted among three groups of experts, namely, tax administration officials, the academia and the private sector. We have developed two benchmark theoretical models where one is more classical-interventionist and the other more neoliberal. We find that responses in all three groups are inconsistent in both theoretical benchmark models which confirm the inconsistency of tax policy and tax administration reforms in BandH.


[1] Allingham, M.G., and Sandamo, A. 1972. Income tax evasion: a theoretical analysis. Journal of Public Economics 1: 323-338.
[2] Alm, J. 1999. Tax Compliance and Administration. Public Administration and Public Policy 72: 741-768.
[3] Antić, D. 2014. Anketa o poreznom sistemu i poreznoj politici BiH. Porezni savjetnik September of 2014: 14–24. Sarajevo: Revicon.
[4] Appel, H., and Orenstein, M.A. 2013. Ideas versus Resources: Explaining the Flat Tax and Pension Privatization Revolutions in Eastern Europe and the Former Soviet Union. Comparative Political Studies 46(2): 123-152. DOI: 10.1177/0010414012453036. Accessed: February 5, 2015.
[5] Baturo, A., and Gray, J. 2007. Flatliners: Ideology and Rational Learning in the Diffusion of the Flat Tax. IIIS Discussion Paper No. 210. Available at: https://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp210.pdf (accessed 05.07.2014).
[6] Bird, R.M. 1991. Tax Administration and Tax Reform: Reflections on Experience in: J. Khalilzadeh-Shirazi and Anwar Shah (Eds.). 1991. Tax Policy in Developing Countries. Washington: The World Bank.
[7] Bird, R.M. 2015. Improving Tax Administration in Developing Countries. Journal of Tax Administration Vol.1:1. Available at: http://jota.website/article/view/8 (accessed 20.02.2016).
[8] Blažić, H., Šimović, H., Štambuk, A. 2014. Mjesto socijalne politike u poreznoj politici RH: anketa poreznih stručnjaka, Revija za socijalnu politiku 21(3): 327-360. Available at: http://www.rsp.hr/ojs2/index.php/rsp/article/viewFile/1216/1274 (accessed 15.03.2016).
[9] Brannon, G.M. 1995. What will the ‘NTA Opinions’ have to do with Federal Tax policy – 1995-6. National Tax Journal. 48(1): 149-154.
[10] Casanegra De Jantscher, M. 1990. Administering the VAT, in: M. Gillis, C.S. Shoup and G.P. Sicat, (eds.). Value Added Taxation in Developing Countries. Washington: The World Bank, 171-90.
[11] Casanegra De Jantscher, M., and R.M. Bird. 1992. The reform of tax administration in M.Casanegra de Jantscher and R.M. Bird (Eds.), Improving Tax Administration in Developing Countries. Washington, DC: International Monetary Found, pp. 1-18.
[12] Abed, G., L.P. Ebrill, S., Gupta, B. Clements, R, McMorran, A., Pellechio, J., Schiff, J., and M., Verhoeven, 1998. Fiscal Reforms in Low-Income Countries: Experience Under IMF-Supported Programs, IMF Occasional Paper No. 160, IMF Washington, D.C.
[13] DeGroat, B. 2013. What do tax policy experts think about U.S. tax policy? Michigan News, University of Michigan’s Office of Tax Policy Research and the National Tax Association. Accessed October 10, 2015. Available at: http://ns.umich.edu/new/releases/21386-what-do-tax-policy-experts-think-about-u-s-taxpolicy
[14] Ebrill, L., and Havrylyshyn, O. (Eds.). 1999. Tax Reform in the Baltics, Russia and Other Countries of the Former Soviet Union. IMF WP No. 182. Washington: IMF.
[15] Garnier, G., Gburzynska, A., György E., Mathé, M., Prammer, D., Ruà, S., and Skonieczna, A. 2013. Recent Reforms of Tax Systems in the EU: Good and Bad News. European Commission Taxation Papers - Working Paper No. 39. Available at: http://Ec.Europa.Eu/Taxation_Customs/Resources/Documents/Taxation/Gen_Info/Economic_Analysis/Tax_Papers/Taxation_Paper_39.Pdf (accessed 25.04.2014).
[16] Heady, C. 2002. Tax Policy In Developing Countries: What Can Be Learned From OECD Experience? Available at: http://www2.ids.ac.uk/futurestate/pdfs/heady.pdf (accessed 20.07.2016).
[17] Klun, M. and Štambuk, A. 2015. Tax experts’ opinion on the tax system in Slovenia. eJounal of Tax Research, 13(3): 784-798.
[18] Kreso, S. 2005. Fiscal Decentralization in BandH. Paper presented at the international symposium: Bosnia and Herzegovina from Past to Present: 241–259. Çanakkale: Çanakkale Onsekiz Mart University.
[19] Lazović-Pita, L. and Štambuk, A. 2015. Professional Opinions and Attitudes About Tax Policy in Bosnia And Herzegovina with the Special Focus on the Federation of Bosnia and Herzegovina. The South East European Journal of Economics and Business, 10(2) 2015: 29-44.
[20] Lim, D., Slemrod, J.,and Wilking, E. 2013. Expert and Public Attitudes Towards Tax Policy: 2013, 1994, and 1934. National Tax Journal, 66(4):775–806.
[21] Melo, M., Denizer, C., and Gelb, A. 1996. From Plan to Market-Patterns of Transition. WB Policy Research Working Paper 1564. Available at: http://Elibrary.Worldbank.Org/Doi/Pdf/10.1596/1813-9450-1564(accessed 10.07.2015).
[22] Musgrave, R.A. 1969. Fiscal Systems. New Haven and London. Yale University Press.
[23] Ott, K. 1998.Tax Administration Reform in Transition: The Case of Croatia. Occasional Paper No. 5. Institute of Public Finance. Available at: http://www.ijf.hr/OPS/5.pdf (accessed 25.05.2015).
[24] Rabushka, A., and Bartlett, B. 1991. Part 11: Comments on ‘Tax Policy and Economic Growth in Developing Nations. In: V. Tanzi. 1991. Public Finance in Developing Countries. Aldershot: Edward Elgar.
[25] Šimović, H., Blažić, H., and Štambuk, A. 2014. Perspectives of Tax Reforms in Croatia: Expert Opinion Survey. Financial Theory and Practice, 38(4), pp. 405–439. Available at: http://Fintp.Ijf.Hr/Upload/Files/Ftp/2014/4/Simovic_Blazic_Stambuk.Pdf (accessed 01.07.2015).
[26] Slemrod, J. and Yitzhaki, S. 2002. Chapter 22: Tax Avoidance, Evasion, and Administration In: Auerbach, A. J and Feldstein, M. (Eds.). 2002. Handbook of Public Economics. Volume 3. Amsterdam: Elsevier.
[27] Slemrod, J. 1995. Professional opinions about tax policy: 1994 and 1934. National Tax Journal. 48(1): 121-147.
[28] Stepanyan, V. 2003. Reforming Tax Systems: Experience of the Baltics, Russia, and Other Countries of the Former Soviet Union. IMF WP 03/173. IMF.
[29] Stotsky, J. 1995. Summary of the IMF Tax Policy Advice. In: Shome, P. (Ed.). 1995. Tax Policy Handbook. Fiscal Affairs Department. Washington: IMF.
[30] Swank, D., and Steinmo, S. 2002. The New Political Economy of Taxation in Advanced Capitalist Democracies. American Journal of Political Science, 46(3): 642–655.
[31] Turley, G. 2006. Transition, taxation and the State. Aldershot: Ashgate Publishing Company, p.138-144.
[32] Walker, M.L. 1935. Opinion of American Professors of Public Finance on Important Tax Questions as of January 1, 1935. In: Tax Systems of the World, edited by Tax Research Foundation. Commerce Clearing House, Inc., Chicago.
[33] Williamson, J. 2004. The Washington Consensus as Policy Prescription for Development. A Lecture in the Series ‘Practitioners of Development’ Delivered at the World Bank on January 13, 2004. Available at: http://www.Iie.Com/Publications/Papers/Williamson0204.Pdf
***World Values Survey. 1999; 2004. WVS Longitudinal Files – Wave 3and4. Accessed June 10, 2016. Available at: http://www.Worldvaluessurvey.Org/Wvsonline.Jsp (accessed 10.06.2016).
***BandH Directorate for Economic Planning. 2012. Ekonomski trendovi –godišnji izvještaj 2012. (Economic Trends – annual report 2012.) Available at: http://dep.gov.ba/dep_publikacije/ekonomski_trendovi/Archive.aspx?langTag=bsBAandtemplate_id=140andpageIndex=1 (accessed 15.05.2015).
***Delegation of the European Union to BandH. 2014. Compact for Growth and Jobs. Available at: http://europa.ba/?p=17720. (accessed 20.07.2016).
***European Values Survey. 2008. European Values Study 2008 (ZacatGesis Data Archive, Release V3.0.0). Available at: http://zacat.gesis.org/webview/index.jsp?object=http://zacat.gesis.org/obj/ fCatalog/Catalog5 (accessed 10.04.2016).
***FBandH Government. 2015. Reformska Agenda za Bosnu i Hercegovinu za period 2015-2018. godinu. (The Reform Agenda). Available at: http://www.fbihvlada.gov.ba/pdf/Reformska%20agenda.pdf (accessed 25.07.2016).
***IMF. 2013. TADAT – Tax Administration Diagnostic Assesment Tool-Program Document. Accessed April, 10, 2016. Available at: www.tadat.org.
***NTA (National Tax Association). 2013. National Tax Association/Office of Tax Policy Research, 2013.Opinion Survey, 2013. NTA.
***OECD. 1999. Principles of Good Tax Administration – Practice Note. Centre for Tax Policy and Administration. Paris: OECD.
***OECD. 2013. Tax Administration 2013: Comparative Information on OECD and Other Advanced and Emerging Economies. Paris: OECD.
***OECD. 2014. Revenue statistics 2014. Available at: http://stats.oecd.org/index.aspx?DataSetCode=REV (accessed 20.11.2015).
How to Cite
LAZOVIC - PITA, Lejla; ŠTAMBUK, Ana. What are the Opinions of Tax Administration Officials Regarding Tax Policy Reforms in Bosnia and Herzegovina?. Journal of Advanced Research in Law and Economics, [S.l.], v. 7, n. 8, p. 2106-2120, may 2017. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/1018>. Date accessed: 20 sep. 2019.