POST‐CRISIS TAX STRATEGY OF THE EUROPEAN UNION AND LESSONS FOR BOSNIA AND HERZEGOVINA

Abstract

Balancing between tax sovereignty of the Member States guaranteed by the Constitution of the Union and the need for tax coordination, the EU have announced a strategy for reform of the EU tax system. The new EU tax strategy is based on three main pillars: the quality of taxation in the context of economic coordination, the contribution of tax policy to the sustainable growth and good governance in the tax area. Parallel with the reforms in the area of public expenditures, and following the efforts of the EU, fiscal authorities of BiH should focus their activities on increasing functionality and efficiency of the complex tax system in BiH within the current constitutional framwork. Adoption of the adequate solutions from the new EU tax strategy should bring substantial benefits to BiH. Seen as a part of way out strategy from the recession, tax reforms, designed in the spirit of the EU strategy, should be aimed at speeding up the process of fiscal consolidation and economic recovery, contriburing to the integration of the economic space in BiH and enabling permanent harmonisation of domestic legislation with the EU law and practice.