Bosnia and Herzegovina: An Overview
Nestled in the heart of Southeastern Europe, Bosnia and Herzegovina (BiH) is a country steeped in history and natural beauty. With a population of approximately 3.3 million, BiH is a melting pot of cultures, religions, and ethnicities. Its capital city, Sarajevo, is a vibrant metropolis that has witnessed both the horrors of war and the resilience of the human spirit.
Recent Economic Developments
BiH's economy has faced significant challenges in recent years, including the aftermath of the Bosnian War and the global economic crisis. However, the country has made progress in stabilizing its economy and implementing reforms. In 2022, BiH's GDP grew by an estimated 3.5%, driven by strong growth in the services sector. The country has also made strides in reducing its budget deficit and improving its fiscal discipline.
Tax Law Changes
In 2023, BiH introduced several changes to its tax legislation, aimed at simplifying the tax system and improving tax collection. These changes include:
- Introduction of a new tax on gambling: A 10% tax has been imposed on all gambling winnings, including those from lotteries, casinos, and sports betting.
- Amendment to the Law on Value Added Tax (VAT): The VAT rate has been reduced from 17% to 16%, effective January 1, 2023. This change is expected to stimulate consumption and reduce the cost of living for citizens.
- Changes to the Law on Personal Income Tax: The personal income tax rates have been revised, with the highest marginal rate reduced from 35% to 30%. This change is intended to provide tax relief to individuals and encourage economic growth.
These tax law changes are expected to have a positive impact on BiH's economy by simplifying the tax system, reducing the tax burden on businesses and individuals, and improving tax collection.
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