KS Government Explains Why They Aided Betting Shops: Subsidies Must Be Given to All Workers by Law

(Patria) - The Ministry of Economy of Sarajevo Canton announced on Friday, June 11, 2021, the lists of approved and rejected applications from business entities for financing of related taxes and contributions on the minimum monthly net salary (in FBiH) for the period of the ban on conducting business activities in March and April 2021, and for financing all or part of the minimum monthly net salary (in FBiH) for the corresponding months.

The list for financing of related taxes and contributions on the minimum monthly net salary (in FBiH) also includes business entities – betting shops, whose operations were banned by the KS Government's decision made at an emergency session held on March 23, 2021, based on the recommendation of the Crisis Staff of the KS Ministry of Health.

Article 2, Paragraph (7) of the Law on Mitigating Negative Economic Consequences and Savings in KS stipulates that, upon the proposal of the Ministry of Economy of KS, the KS Government may, by decision, approve the payment of related taxes and contributions on the minimum monthly net salary at the FBiH level to business entities whose operations it has banned by its decision, for the duration of this ban, which was the basis for adopting the Decision on approving the financing of related taxes and contributions on the minimum monthly net salary (FBiH) for the period of the ban on conducting business activities for all business entities that met the conditions and criteria of the aforementioned Public Call, and thus also for betting shop employees.

Some media outlets took these data from the public call related to the financing of related taxes and contributions out of context and interpreted them as aiding betting shops, attempting to mislead the public with such half-truths.

Namely, betting shop employees, like all other employees and business entities whose operations were banned by the KS Government's Decision, cannot be discriminated against in any way, and therefore their related taxes and contributions will be paid, as prescribed by the Law on Mitigating Negative Economic Consequences and Savings in Sarajevo Canton.

Compliance with the Law is an obligation, and in case of non-compliance with it and what we promised, we would expose the KS Budget to higher costs than the mentioned KM 120,000 that some media outlets are speculating about, because legally wronged business entities would have the right to file lawsuits.

This would be far more expensive and a greater burden on the KS Budget than the stated amount.

The funds being paid under this Public Call are essentially returned to the Sarajevo Canton Budget and are not primarily assistance to betting shop owners, but rather a relief for employees in terms of regulating their employment status.

The goal is to preserve jobs and facilitate the regulation of obligations related to the payment of taxes and contributions for the period in which they were banned from conducting business activities, in accordance with the Classification of Activities in BiH from 2010.

We also remind that, in accordance with the rules of the Public Call for financing all or part of the minimum net salary at the FBiH level, as well as other public calls, betting shops are not and have no right to participate in those public calls.