The results of the EU funded Twinning project “Further harmonisation to EU practices and Acquis on customs and taxation” were presented at the final conference held in Banja Luka on 28 January.
One of the results of this successful project includes the new Custom Policy Law that is currently at the BiH Parliamentary Assembly for adoption as well as a new draft VAT Law aligned with the relevant EU Directives and the VAT system in the European Union.
Brigitte Kuchar, Acting Head of Operations Section for Justice, Home Affairs and Public Administration Reform at the EU Delegation to BiH, said in her welcoming remarks: “It is important to create a more simple, efficient and robust VAT system that ensures a stable revenue for the state and prevention of fraud or tax evasion. Draft legislation and simplified customs procedures developed through this twinning project are aligned with the EU Acquis and hence will bring the country closer to the EU. This will also bring positive change for citizens and the business community in Bosnia and Herzegovina.”
The legal and operational documents and manuals of a New Computerised Transit System were also prepared by the project, which can be implemented once the Customs Policy law enters into force. This will, for example, allow trucks to enter different countries without lengthy procedures on each border crossing.
The project has also contributed to put in place the legal and operation preconditions for the introduction of the status of an Authorised Economic Operator, which makes imports for companies quicker and less bureaucratic.
Miro Džakula, Director General of ITA, stated: “The project has provided great assistance to align all legislation and procedures in the field of indirect taxes in BiH with the laws of the European Union and Member States, and to strengthen the institutional and administrative capacity of Indirect Taxation Authority.”
Ms Kuchar also stressed the level of dedication and ownership demonstrated during project’s implementation by the ITA management and staff as well as expertise and commitment from the EU Member States experts whose joint efforts and cooperation allowed achievement of project results.
The European Union financed the project in the amount of 2 million Euro through the Instrument for Pre-accession Assistance (IPA 2011). The European Union allocated an additional 3.1 million Euro under IPA in 2014 for further support to the ITA. In addition to twinning assistance, these funds will also be aimed to further develop the application for the New Computerised Transit System and finance the equipment for the customs laboratory ones ITA will provide adequate space for it.
The project started in January 2013, and was implemented by the Agency for European Integration and Economic Development (AEI) through the Austrian Federal Ministry of Finance, in cooperation with the Slovenian Ministry of Finance – Financial Administration of the Republic of Slovenia.
