重温波斯尼亚和黑塞哥维那的税收楔子（英）

Revisiting the Tax Wedgein Bosnia and Herzegovina Bobana Čegar Babić, Alpa Shah and Ian Stuart SIP/2025/122 IMF Selected Issues Papers are prepared by IMF staff asbackground documentation for periodic consultations withmember countries.It is based on the information available atthe time it was completed on July 29, 2025. This paper is alsopublished separately as IMF Country Report No 25/253. 2025SEP IMF Selected Issues PaperEuropean Department Revisiting the Tax Wedge in Bosnia and HerzegovinaPrepared byBobana Čegar Babić, Alpa Shah and Ian Stuart Authorized for distribution by David AmaglobeliSeptember 2025 IMF Selected Issues Papersare prepared by IMF staff as background documentation for periodicconsultations with member countries.It is based on the information available at the time it wascompleted on July 29, 2025. This paper is also published separately as IMF Country Report No 25/253. ABSTRACT:This paper revisits labor tax wedge issues in Bosnia and Herzegovina (BiH in light of reenthanges to minimum wages and soial seurity ontribution (SSrates. Using detailed information, it providesestimates of average and inome-speifi labor tax wedges in both the Federation of BiH (FBiH andRepublika Srpska (RS. The effetive tax wedge may be lower than suggested by onventional measures—partiularly in (FBiH, where non-taxable employment benefits and preferential income tax treatmentsenourage tax-saving arbitrage. Reforms toward a more effiient, progressive and transparent system areneessary to boost fisal and growth outomes. There is signifiant sope for simplifiation, base broadeningand greater progressivity, whih ould pave the way for future headline SS rate uts. RECOMMENDED CITATION:Bobana Čegar Babić, Alpa Shah and Ian Stuart,2025."Revisiting the TaxWedge in Bosnia and Herzegovina."IMF Selected Issues PaperNo. SIP/2025/122. SELECTED ISSUES PAPERS Revisiting the Tax Wedge in BiH Bosnia and Herzegovina Prepared by Bobana Čegar Babić, Alpa Shah and Ian Stuart1 BOSNIA AND HERZEGOVINA SELECTED ISSUES Approved ByEuropean DepartmentPrepared ByBobana Čegar Babić, Alpa Shah, and Ian Stuart A. Introduction_________________________________________________________________________2B. Overview of the BiH Labor Market and the Tax System_____________________________3C. Estimating the Tax Wedge for BiH__________________________________________________6D. The Tax Wedge Across the Income Distribution___________________________________11E. Conclusions and Policy Considerations_____________________________________________13 BOX 1. Allowances Arising from Employment_______________________________________________7 FIGURES 1. PIT and SSC Rates in the Region, 2024______________________________________________52. Revenue Structure in the EU, BiH and Western Balkans_____________________________53. Tax Wedge in FBiH and RS__________________________________________________________94. Tax Wedge Level and the Structure in the Region__________________________________105. Tax Wedge Depending on the Income Source_____________________________________116. Tax Wedge Progressivity in BiH and the Region____________________________________117. Tax Wedge per Income Distribution________________________________________________128. Tax Wedge in FBiH in 2025, Before and After Amendments to SSC Law___________13 TABLES 1. Labor Tax Rates in BiH, 2024________________________________________________________42. Fiscal Impact of 2025 MW and SSC Changes in FBiH________________________________6 ANNEX I. Tax Wedge in the EU________________________________________________________________15 REVISITING THE TAX WEDGE IN BIH1 This paper revisits labor tax wedge issues in Bosnia and Herzegovina (BiH) in light of recent changes tominimum wages and social security contribution (SSC) rates. Using detailed information, it providesestimates of average and income-specific labor tax wedges in both the Federation of BiH (FBiH) andRepublika Srpska (RS). These suggest that the effective tax wedge may be lower than suggested byconventional measures—particularly in (FBiH), where non-taxable employment benefits andpreferential income tax treatments encourage tax-saving arbitrage. Reforms toward a more efficient,progressive and transparent system are necessary to boost fiscal and growth outcomes. There issignificant scope for simplification, base broadening and greater progressivity, which could pave theway for future headline SSC rate cuts. A.Introduction 1.The tax wedge in BiH is a significant driver of labor market outcomes.Taxes on labor,while an important feature of most tax systems worldwide, distort economic incentives by creating awedge between demand and supply, through the differential between what employers pay for laborandwhat employees receive. The tax wedge tends to reduce the amount of formally traded labor–an effect that may be exacerbated in BiH given the high labor mobility with advanced Europeancountriesandthe sizable informal sector.At t