MojPorez.ba: Average employed person in BiH works longer to pay taxes

SARAJEVO, (Patria) - The average employed person in Bosnia and Herzegovina stops working to pay their taxes today and starts working for themselves, according to data from the mojporez.ba platform.

"That's why today we want to mark Tax Freedom Day for the average employed person in BiH, and we point out that the average person in BiH worked 205 days this year to pay taxes, which is 8 days more than in 2018, and 13 days more than in 2017. Therefore, a person with average income and consumer habits paid more taxes this year compared to last year. Specifically, this year in the Federation, based on work and consumption, the average person paid 10,190 KM, compared to 9,800 KM last year. In RS, based on the same grounds, the average person paid 8,550 KM this year, compared to 8,350 KM last year, announced the Center for Policy and Management.

They add that this increase can be attributed to the growth of average salaries in both entities, as well as changes in consumer prices and citizens' habits.

"In relation to what has changed in tax policy in BiH, it is much more significant to highlight what has not changed. Namely, the authorities in BiH committed themselves through reform documents four years ago to bring about changes in tax policy that would shift the tax burden from labor to consumption. However, to this day, the expected reduction in social security contributions in FBiH, i.e., tax relief for labor income, has not occurred," the statement said.

They add that in RS, there has been tax relief for salaries through an increase in the non-taxable income threshold from 200 to 500 KM in 2018, and through the adoption of the Law on Economic Incentives of RS, which came into force in July 2019, and which defines the conditions, beneficiaries, and procedures for exercising the right to incentives for increasing labor wages.

In line with the trend from previous years, the taxation of consumption continued to increase, so on January 1, 2019, excise taxes on tobacco were increased.

The CPU reminds that on the website www.mojporez.ba you can calculate your personal Tax Freedom Day.