Sarajevo ANALYSIS Wealth Tax in Bosnia and Herzegovina A Contribution Towards Equality and Democratization Adisa Omerbegovic Arapovic, SARAJEVO July 2017 „ „ This extensive study of history of taxation and theory of taxation has shown that a wealth tax can be an important component of a tax policy as it is proven that it points to a political concern and orientation towards a system of measures that should faci­litate more equal outcomes of capitalism. It can boost a more efficient social policy and entails also a potential to correct the common trend of an increasing accumula­tion of wealth in the hands of the few. „ „ The wealth tax may be an important mechanism in reversing wrongdoings of the failed privatization in BiH, illicitly obtained wealth and grey economy. Wealth registries that are necessary for imposing a wealth tax, work towards democratization of capitalism, destigmatize entrepreneurship and capitalists, and correct mistakes of failed privati­zations in a very systematic manner. „ „ Potential introduction of a wealth tax in BiH can provide important source of revenue given estimates of total wealth in BiH amounting to 114 to 218 billion KM using diffe­rent methodologies, which if taxed at only 1% could yield between 1.14 to 2.18 billion KM in tax revenue.