Effects of tax forms in BiH
Effects of tax forms in BiH

Summary/Abstract: Tax system must be adequately designed so effects of tax forms do not have damage implications for a country’s macroeconomic framework. The paper analyzes the share of direct taxes and indirect taxes in the gross domestic product of BiH and includes empirical research that measures and evaluates aggregate tax effects on macroeconomic framework of BiH for the 2013-2018. The macroeconomic frame-work has been analyzed in terms of movmements in gross domestic product, inflation, unemploymnet, total investment, total savings and total debt. The results of correlation indicate a significant correlation between direct taxes and observed macroeconomic indicators with the exception of inflation, while indirect taxes are significantly correlated with gross domestic product, unemployment and total debt. The results of multiple regresson models show the positive impact of direct taxes on gross domestic product and unemployment, while indirect taxes have negative impact on gross domestic product. Also, direct taxes have a negative impact on total investment and total savings, while indirect taxes have negative implications for the level of total savings in BiH for analyzed period.

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