In theory, the BiH society has earned enough money to pay its taxes today, which is why we wish all the citizens a happy Tax Freedom Day!
This is a significant date for all taxpayers, as it shows for how long the Bosnians and Herzegovinas had to work to pay all of this year’s taxes. To date, we have worked to pay the total amount of VAT, excise duty, road tolls, pension, health and unemployment insurance, income and profit tax, and other taxes, fees and charges. From today till the end of the year we will work for ourselves and our needs.
What has changed in relation to the previous two years?
This year, BiH citizens worked 161 days for paying taxes, while in 2018 they worked for 162 days (the Day of Tax Freedom fell on June 11), and in 2017 they worked for 152 days (the Day of Tax Freedom fell on June 2 ). Due to higher economic activity and increased controls, tax collection was improved in the previous year, and the amount of all collected taxes was higher than in 2017. However, even though higher economic activity resulted in GDP growth, this has affected the tax burden to remain at the same level.
Calculate your personal Tax Free Day at www.mojporez.ba!
On this occasion, we present an updated platform www.mojporez.ba where you can calculate your personal Tax Free Day – the day you stop working for paying taxes, and you start working for yourself. Due to the complex tax system and the complex administrative structure of the state apparatus, the collection and consumption of taxes for citizens are poorly understood. This tool enables the user to find out how much tax is paid on an annual and monthly basis on the basis of his own income and consumer habits, on what grounds, and on what exactly the money is being spent in the budgets. The day of tax freedom for the average worker in BiH is in a month and a half.
What do we pay through taxes?
Citizens of BiH should be aware that through taxes and contributions they pay public services (pensions, health care, education, infrastructure, administration, defense, public order and security, social protection) and should be informed about the amount of money allocated at monthly and annual level for that purpose. For example, the majority of tax money in 2018 was spent on pensions and social protection, health care, and general public services, and the exact amount spent on individual public functions, as well as the amount of collected tax assets can be found at www.mojporez.ba. In this way, the platform also has an educational role, since citizens, after using the platform, will know how much of their money is allocated for individual public services, and on the basis of this, they can express their opinion on the satisfaction of the public services provided.
The platform www.mojporez.ba was created by the Center for Policy and Management and CA Why not in cooperation with the Center for International Private Enterprise and the Lithuanian Free Market Institute.