KRUG 99 - Employers: There are many burdens on the BiH economy, contributions and income tax laws are a priority to resolve

SARAJEVO, (Patria) - Inconsistent policies and regulations related to business, expensive and unsustainable fiscal and parafiscal burdens, high taxes, contributions and parafiscal levies, lack of workforce, expensive and inefficient administration are a great burden on the real sector. 

This was stated today ahead of the Krug 99 session on the topic "Politics - the biggest obstacle for the BiH economy", with introductory speakers being representatives of the Employers' Association in the Federation of Bosnia and Herzegovina and Sarajevo Canton.

In addition to these problems, employers emphasized the very complex social picture in the Federation of BiH and the needs in the social protection sector, which also represents a great pressure on the business community. 

The labor market is unregulated, there are no records of active job seekers that would follow the real needs for labor, and the import of labor is limited while the procedures and administration for foreigners working in BiH are complicated and lengthy.

- The education system does not follow the needs of the labor market, which will result in a great shortage of labor in the future - according to employers' representatives.

As stated, the Federation of BiH is a very uninviting space for starting businesses for foreign and domestic investments, which is caused by the lack of incentives for starting a business, the lack of workforce, the excessive burden of labor costs, archaic regulations, and the like.

Import and export procedures are complex, and the situation has become even more complicated with the shifting of European Union borders to the state border of BiH and the Republic of Croatia.

All this motivated the Employers' Association in FBiH to actively initiate certain activities towards the executive and legislative authorities, and through the document "What Employers Expect from the Authorities", about 40 proposed regulations at all levels of government in BiH were submitted.

- While awaiting the establishment of government, employers and trade unions are united and trying to initiate at least key priorities, which are primarily the laws on contributions and income tax - said the president of the Employers' Association in FBiH, Adnan Smailbegović.

He added that, without great effort and complicated procedures, authorities can adopt a regulation that would allow employers to pay a special part of the salary, up to 400 KM on top of the employee's existing salary, and this additional part of the salary would be exempt from health and unemployment contributions.

- This measure would certainly lead to an improvement of the business environment, and thus to an increase in salaries, which would help stop the outflow of labor from BiH - according to employers.

The burden of labor costs in the Federation of BiH is the most expensive in Europe, and taxes, contributions, parafiscal levies and other burdens result in almost a 'salary on a salary', if we analyze the amount of the average gross salary, the part paid to the employee for their work and the part paid into various state funds.