Fiscal Sector Reform Activity (FAR)

The purpose of the Fiscal Sector Reform Activity is to identify and recommend interventions to be carried out in the fiscal sector, with the ultimate goal of improving fiscal and public expenditure management through a comprehensive approach. The project's DRM activities with both the Federation and the Republic of Srpska have focused on further broadening the taxpayer register; eliminating a number of nuisance fees; reducing tax evasion in the gaming industry and other sectors; development of risk-based audit software for improved control and tax compliance of companies; and further simplification of procedures to reduce taxpayer burdens. The project has improved the basic IT infrastructure needed to fully implement and expand e-filing and e-payment – such that most payroll taxes and contributions in the Federation are now electronic, and 70 percent of Republika Srpska revenues are paid via the e-payment mechanism.