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Environmental taxes: current priorities in Bosnia |
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Environmental legislation is not a
priority in the post-war period
Bosnia and Herzegovina (BiH) was recognised as an independent and sovereign state after four years of war resulted in the dissolution of the former Yugoslavia. The country suffered the worst forms of damage that can result from a war, i.e. destruction of public, urban and economic systems and decimation of the population. The post-war period has been dedicated to the reconstruction of basic economic capacities and the creation of conditions for employment opportunities. After a six-year period, economic development is still
low and unemployment rates are high. The main task of the government is to
find solutions to the essential problems and needs of the population and to
establish a normal social-development path. In such a difficult economic and
social situation, environmental economic instruments are not receiving much
attention. Basic environmental laws do not even exist, which is not
surprising since the entire country's legal system still needs to be developed. An inheritance from the past Despite this particularly difficult situation, a few environmental economic instruments are in place today, generally inherited from the pre-war period. The country developed at that time a Law on Physical Planning and a Physical Plan of BiH for 1981-2000, which introduced the polluters-pay principle. The Law on Physical Planning mentioned economic instruments as interesting tools to raise revenues while achieving acceptable levels of pollution. In 1990, a "Program of measures and activities for
protection of environment in Bosnia and Herzegovina" was proposed to
face environmental degradation resulting from the rapid industrialisation
and urbanisation of the country at that time. As mentioned, the war
completely changed the face of the country and today's priorities are vastly
different. However, a few measures in relation to environmental protection
and economic instruments have survived, occasionally revised, and are
still in place in the country. A few basic environmental economic instruments In particular, we shall mention the basic conditions for water protection which can be found in the country, as a result of a Water Law adopted before the war, and reviewed after the war to ensure decentralisation of competencies. Consumers have to pay for water supply and sewerage. Charges for water supply have been re-established after the war (water was free of charge during the war). However, water prices do not reflect real supply and sewerage costs, as they are kept extremely low to prevent social unrest. Similarly, there are some water abstraction fees and water effluent charges dating from 1998. However, there are no penalties in place for non-compliance with the law. A project to reform the water sector was undertaken in 1998-99 in cooperation with consultants from the European Union. It resulted in a proposal to introduce progressive pollution fees as an incentive to reduce water pollution over time. Penalty fees would be created at the same time. In addition, we should mention the existing deposit-refund system for bottles made of glass. Percentage of products returned is around 70 percent. However, the system does not cover any other material, such as plastic bottles or cans, which are now widely used by consumers. Generally speaking, B&H cannot be said to have proper environmental economic instruments in place. Slow legislative processes have delayed the development of the necessary regulatory framework. A significant burden is placed on the Parliament to enact a large volume of new legislation, among which environmental legislation is not considered as a priority. |
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