Čavalić receives Nikšić's response: Fiscal laws package still pending, impact on budget being analysed

(Patria) - Federal representative Admir Čavalić (SBiH) has received a response from the Government of the Federation of Bosnia and Herzegovina, signed by Prime Minister Nermin Nikšić, regarding the status of the fiscal laws package. According to the brief response, it is clear that these laws will not enter the procedure for some time yet.

Prime Minister Nikšić stated in public appearances that he hoped they could be adopted in the second half of the year.

Earlier, Deputy Prime Minister Vojin Mijatović announced a minimum wage of 1,000 BAM from January 1, 2024, but that did not happen either. Instead, the Government of the Federation of Bosnia and Herzegovina devised a trick with the payment of aid to workers in a maximum amount of 2,520 BAM until June 30, 2024, which would be tax-free, in order to "achieve that minimum wage" in this way. However, to date, it is not known how many employers used this option and whether they paid the full amount, a part of it, or not at all, because the decision was not binding.

In the response received by Čavalić, it is stated that the Federal Ministry of Finance is actively working on drafting proposals for new legal solutions in the area of contributions and income tax.

"Given that these are systemic laws that will have a significant impact and that their drafting is therefore a very complex process, we inform you that we will forward them to the Parliament of the Federation of Bosnia and Herzegovina immediately after consideration by the Government of the Federation of Bosnia and Herzegovina," states the response received by Čavalić.

The response also notes that an analysis of the impact of the proposed solutions on the budget and extra-budgetary funds is being conducted.

Employers' associations continuously appeal to the Government of the Federation of Bosnia and Herzegovina to reduce the contribution rate in order to relieve them, so that workers would finally benefit.

Fiscal reforms on hold… pic.twitter.com/IybQxjlRTu

— Admir Čavalić (@AdmirCavalic) June 7, 2024