Bosnia records strong growth in indirect tax revenue

Indirect tax revenue in Bosnia and Herzegovina totaled 7.244 billion convertible marks (KM) in the first seven months of this year, an increase of 395 million KM, or 5.77 percent, compared with the same period in 2025, when revenue amounted to 6.849 billion KM.

During the first seven months of the year, the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina refunded 1.264 billion KM in value-added tax (VAT) to taxpayers entitled to VAT refunds under the law, CE Report quotes FENA.

Net revenue distributed to beneficiaries—including the state, the entities, and the Brčko District—amounted to 5.980 billion KM, up 7.27 percent compared with the amount distributed during the same period in 2025.

In July, indirect tax revenue totaled 1.168 billion KM, an increase of 66 million KM compared with July 2025.

A total of 589 million KM was allocated to finance Bosnia and Herzegovina's state institutions during the first seven months of the year. The remaining indirect tax revenue was distributed to the country's entities and the Brčko District.

The Federation of Bosnia and Herzegovina received 3.317 billion KM from the single treasury account, Republika Srpska received 1.856 billion KM, and the Brčko District received 186 million KM.

In addition to these allocations, revenue from the special 0.25 KM road toll designated for motorway construction and the construction and reconstruction of other roads provided an additional 137 million KM to the Federation of Bosnia and Herzegovina, 90 million KM to Republika Srpska, and 5 million KM to the Brčko District. The remaining funds represent a reserve held in the dedicated road toll account, according to the Indirect Taxation Authority of Bosnia and Herzegovina.

Photo: Pexels (Free Stock Photos)