29.06.2012 | Serbia

S&T modernizes tax administration of the Republic of Srpska

The signing of the agreement was also attended by Aleksandar Džombić, the Prime Minister of Republic of Srpska, who stated that tax administration will obtain excellent software that will contribute to creating a more transparent process, increasing revenue and cutting down operating costs.

"Our current system does not meet our needs any more. It is confusing and complicated and neither we nor our taxpayers are satisfied with it", Vidović stated and added that the new system has excellent global references and already lead to an annual increase in tax collection revenue from 3 to 10 percent and savings in tax operation administration from 20 to 35 percent in other countries.

The new integrated information system will be based on SAP Tax and Revenue Management System. S&T Serbia will be responsible for the implementation part worth 2.4 million euros. Expected benefits besides increased revenue collection and lower operational costs will be improved services to tax payers: Drastic reductions in waiting time and simplified procedures and processes are an essential part of the project.

When speaking about the implementation of modern information technologies in the public sector and their importance in the current economic situation Vraneš pointed out that in a general situation of crisis the tax system and fiscal policies are one of the main levers to get out of the crisis. He also emphasized that an integrated and flexible information system is strategically fundamental for the ability to react quickly and efficiently to upcoming challenges.