AmCham BiH wrote to the FBiH Government: Reduce the contribution rate to 31 percent to ensure a sustainable economic environment in FBiH

(Patria) - The Tax and Legal Affairs Committee of the American Chamber of Commerce in Bosnia and Herzegovina welcomes the adoption of the Law on Amendments to the Law on Contributions of the Federation of BiH, which reduced the contribution rate on employers by 5.5 percent. This measure represents an important step towards relieving the business sector, improving the competitiveness of domestic companies, creating new jobs, and attracting investments.

However, AmCham BiH points out that the aforementioned measure is not sufficient to significantly alleviate the fiscal pressure faced by economic entities. The key to success lies in the implementation of a comprehensive and systemic fiscal reform, which must be realized as soon as possible. Such a reform should be based on a three-year fiscal plan with clearly defined measures that will ensure continuous growth of the gross domestic product (GDP).

In its letter to the FBiH Government, AmCham BiH proposes that the second phase of the reform includes setting a combined contribution rate of a maximum of 31 percent, which would further facilitate business operations, stimulate growth, and ensure a long-term sustainable and competitive economic environment in the Federation of BiH.

"We call on the Government of the Federation of BiH to urgently consider the possibilities for continuing reforms and further reducing fiscal burdens in order to respond to the challenges faced by the domestic economy," stated AmCham BiH.

The American Chamber of Commerce in BiH remains open to cooperation and expert consultations with all relevant institutions, with the aim of creating a modern and stable fiscal system that will contribute to the competitiveness and sustainability of the Bosnian-Herzegovinian economy.