ESV KS calls for suspension of further activities on amendments to the Law on Public Revenue Allocation in FBiH

(Patria) - The Economic and Social Council of Sarajevo Canton, at its regular session held yesterday, considered and adopted several conclusions regarding the procedure for adopting the new federal Law on Public Revenue Allocation, which is also extremely important for the functioning of the public and private sectors in our canton.

All social partners in the Council, representatives of the KS Government, trade unions, and employers agreed that the adoption of the federal law on public revenue allocation in FBiH is particularly important for realizing the public revenues of Sarajevo Canton in the coming years, and that it significantly determines the functioning of the public, as well as the private sector in Sarajevo Canton.

"The Economic and Social Council for the Sarajevo Canton area calls on both houses of the Parliament of the Federation of BiH to suspend further activities related to the adoption of the proposed amendments and additions to the Law on Public Revenue Allocation of the Federation of BiH, and to proceed with urgent amendments and additions to the existing law or the adoption of a new law on public revenue allocation in the Federation of BiH," concluded the Economic and Social Council of KS, currently chaired by the president of the Employers' Association in KS, Safudin Čengić.

As they emphasized, the drafting of the new Law on Public Revenue Allocation in the Federation of BiH should have been preceded by a detailed analysis of public revenues, expenditures, debt, and the functional, constitutional, and legal competencies of all levels of government in FBiH, which would result in the creation of a new model for the distribution of public revenues.

They also pointed out that the analysis should be comprehensive in terms of addressing the issue of indirect tax revenue distribution between entities, then the issue of vertical distribution between the federal level of government, cantons, and local communities, and the issue of horizontal distribution between cantons.

They also concluded that the results of the aforementioned analyses should serve as a basis for the proposal of a completely new distribution model that would be based on a combination of economic and social criteria.