Employers of FBiH: Urgent reforms of the fiscal and parafiscal system to relieve the economy and retain workforce

(Patria) - The urgent adoption of new fiscal laws and the reduction or abolition of parafiscal levies, with the aim of reducing the cost of labor and relieving the business operations of companies in the Federation of Bosnia and Herzegovina, will enable economic growth, partially stop the outflow of qualified labor from Bosnia and Herzegovina, and improve the living conditions of all citizens. This was highlighted at the XXI Assembly of the Association of Employers in the Federation of Bosnia and Herzegovina, attended by representatives of the legislative and executive authorities of BiH, FBiH, and cantons, international organizations, non-governmental organizations, and trade unions.

"UPFBiH will make a full contribution to the implementation of reforms on the European path of Bosnia and Herzegovina and will work with representatives of competent institutions on creating a strategic and legal framework in the segment of fiscal and parafiscal regulations, the labor market, and other issues with the aim of improving the business environment and creating conditions for a better life for citizens," said Adnan Smailbegović, president of UPFBiH.

Prof. Dr. Faruk Hadžić, in his presentation during the thematic part of the UPFBiH Assembly, emphasized that reforms of the fiscal and parafiscal system are a necessity if we want to develop the economy and society as a whole.

"The reform of the fiscal and parafiscal system of FBiH will not jeopardize the functioning of budget funds such as the Pension and Disability Insurance Fund (PIO/MIO) and health insurance funds in FBiH in the long run," emphasized Prof. Dr. Hadžić.

In addition to the necessary reforms regarding taxes and contributions on wages, as well as parafiscal levies for stronger economic development, it is necessary to increase productivity.

"The increase in economic productivity is precisely inevitable as one of the key sources of growth," said Prof. Dr. Vjekoslav Domljan.

Within the working part, the delegates of the UPFBiH Assembly unanimously adopted the report on the work of UPFBiH, as well as the financial report for last year, presented by the director of UPFBiH, Mario Nenadić. Delegates also considered and adopted the work plan and financial plan for the current year 2024.

The delegates of the Assembly and guests emphasized the importance of improving the trilateral dialogue – government, employers, and trade unions – with the aim of strengthening the system and the business environment in FBiH, especially in the implementation of fiscal reforms, amendments to laws on contributions, income, profit, minimum wage, but also regulations in the field of health insurance, employment mediation, trade, occupational safety, and others.

All participants agreed that it is necessary to strengthen the representative association of employers, and they provided great support for the further work of the Association and announced joint work on improving the business environment in FBiH.