Indicator 17.50 Shares of environmental taxes in total tax revenues

The indicator measures the share of environmental taxes in total revenues from taxes and social contributions. Environmental taxes are defined as taxes whose tax base is a physical unit (or proxy of it) of something that has a proven, specific negative impact on the environment. Environmental tax revenues stem from four types of taxes: energy taxes (which contribute around three-quarters of the total), transport taxes (about one fifth of the total) and pollution and resource taxes (about 4 % of the total).

A list of environmental taxes for Bosnia and Herzegovina has been prepared. All identified environmental taxes are grouped into four categories: energy taxes, transport taxes, pollution taxes, and resource taxes. Neither CO2 taxes nor other carbon-related taxes existed in Bosnia and Herzegovina during the reporting period. The environmental taxes are based on the existing National Tax List (NTL) of the Central Bank of Bosnia and Herzegovina and are derived from administrative data identified across tax data sources. All data are collected directly from administrative sources: the Indirect Taxation Authority of Bosnia and Herzegovina, the Tax Administration of Republika Srpska, the Tax Administration of the Federation of Bosnia and Herzegovina, and the Finance Directorate of Brčko District.

In a global context, where consumption patterns in one region can severely impact production patterns elsewhere in the world, it is particularly important that prices reflect the real costs of consumption and production. They should, therefore, also include the payments for the damages activities cause to human health and the environment. EU policies such as the European Green Deal call for a shift from labour to energy and environmental taxes as part of a ‘greening’ of taxation systems, meaning that revenues from environmental taxes should increase relative to labour taxes. The European Semester monitors the progress towards the objectives laid down in the European strategies.

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