PANDEMIC IMPACTED DECLINE Review of Tax Revenue and Contribution Collection

The Government of the Federation of BiH, at today's session in Sarajevo, chaired by the Deputy Prime Minister and Federal Minister of Labour and Social Policy Vesko Drljača, by written authorization of the Prime Minister, accepted the monthly review of tax revenue and contribution collection in the FBiH for June and the first six months of 2020.

Indirect Tax Revenue

In June 2020, the available portion of indirect tax revenue from the Single Account for budgets at all levels of government and road authorities in the Federation of BiH was realized in the amount of 189 million KM, which is 1.2 percent or 2.3 million KM less compared to the collection in the same month of 2019. Compared to the realization from May this year, which recorded an extremely negative trend, this category recorded a growth of 35.83 percent or 49.9 million KM in June.

In June this year, 16.8 million KM was allocated to the Federation of BiH from dedicated road tolls for the construction of highways and the construction and reconstruction of other roads, which is 7.6 percent or approximately 1.4 million KM less compared to the same month of 2019. Compared to the amount from May of the current year, revenue in June was higher by more than 41.5 percent or by 4.9 million KM.

Direct Tax Revenue

Total collected profit tax revenue in the FBiH in June 2020 amounted to 26.6 million KM, which is 9.5 percent or 2.3 million KM higher compared to the same month of 2019. Cumulatively, total profit tax revenue in the Federation of BiH amounts to 185 million KM, with a recorded decrease of 12.1 percent or 25.5 million KM compared to the same period of 2019. Profit tax paid into the Budget of the Federation of BiH amounts to 47.8 million KM, which is 3.5 percent or 1.7 million KM less compared to the same period of the previous year. Profit tax revenue paid into cantonal budgets cumulatively amounts to 137.3 million KM, which is 14.8 percent lower.

Total income tax revenue paid in the FBiH in June 2020 amounted to 32.9 million KM, which is 1.7 percent or slightly more than half a million KM less compared to June of the previous year. Compared to payments in May of the current year, revenue in June was higher by 3.4 percent or slightly more than one million KM.

Payment of property tax revenue to the public revenue accounts of cantonal budgets in June 2020 was made in the amount of 2.4 million KM, which is 22.6 percent higher compared to June 2019. Compared to the previous month of 2020, the collection of this revenue in June was higher by 18 percent. Cumulatively, this revenue amounts to 21.9 million KM, which is nine percent lower compared to the same period of 2019.

Payment of inheritance and gift tax revenue to the public revenue accounts of cantonal budgets in June 2020 amounted to 269,698 KM, which is 7.2 percent higher compared to the same month of the previous year, while compared to May of the current year, this revenue category more than doubled its realization level in June.
Revenue from real estate transfer tax in June 2020 amounted to 4.6 million KM and is approximately at the same level compared to June of the previous year. The monthly collection level of this revenue in June is 38 percent higher compared to the execution from May of the current year.

Contributions

The trend of reduced collection of contributions for pension and disability insurance, for health insurance, and for unemployment insurance compared to the realizations from 2019, which began under the negative impact of the pandemic on the economy in April 2020, continued in June, but to a lesser extent. Collected contributions for pension and disability insurance to the Budget of the Federation of BiH in June 2020 amounted to 150.6 million KM, which is 7.6 percent less compared to June 2019. Compared within 2020, monthly collection of this revenue in June compared to May recorded a growth of 0.6 percent.

The cumulative level of this revenue for the period 1.1-30.6.2020 amounts to 952.1 million KM and is 4.3 percent lower compared to the same period of 2019.

Revenue from health insurance contributions in June 2020 was collected in the amount of 109.5 million KM, recording a decrease of 6.6 percent or 7.7 million KM compared to the same month of the previous year. Of the total collected amount, 1.3 million KM relates to payments to the Federal Health Insurance Bureau and Reinsurance, while the remaining 98.2 million KM consists of payments to cantonal health insurance bureaus. Cumulatively, this revenue totals 679.3 million KM, which is 4.1 percent lower, or approximately 29 million KM less, compared to the comparative period of the previous year.

Collection of contributions for unemployment insurance in June 2020 amounted to 12.5 million KM, which is 8.5 percent or 1.1 million KM less compared to payments in the same month of 2019. Looking at the cumulative collection, revenue from contributions for unemployment insurance amounts to slightly more than 79 million KM, with a recorded decrease of 4.4 percent compared to the same period of 2019.