Minister Kraljević: After 17 years, we are lowering the contribution rate by 13.25 percent

(Patria) - With the Law on Amendments to the Law on Contributions, we are stepping into the sphere of fiscal reform, and all measures and decrees adopted so far are a kind of painkiller because there is no fiscal reform, said the Minister of Finance in the FBiH Government, Toni Kraljević, today. At the session of the Economic and Social Council (ESV), a reduction in the contribution rate was agreed upon, and the Government will adopt the amendments and send them to the parliamentary procedure. The application should start from July 1, 2025.

"The law will be sent to the parliamentary procedure. The Law on Amendments to the Law on Contributions reduces contributions by five and a half index points, from 41.5 to 36, meaning the aggregate contribution rate is reduced by 13.25 percent," said Kraljević.

The decree of 100 million KM from the budget of the Ministry of Trade and Entrepreneurship, which will go through the Employment Service for low-accumulation activities, and the decree on non-taxable assistance to employees, this decree has been redefined and liberalized in its current form, and the feedback from the field is that employers are using it exceptionally.

He points out that the aggregate contribution rates have been reduced after 17 years.

"The mere fact that we had a Gordian knot that has stood anchored for 17 years and that someone is finally 'untangling' it is a huge step forward and will mean a lot to employers. This government must be a friend to workers, but at the same time a friend to employers, because every employer takes their business home, goes to bed with it, wakes up with it, so they are also workers themselves, so this measure will help everyone," emphasized Kraljević.