Employers dissatisfied with electricity price increase, but welcome tax-free payment of two average salaries to workers

(Patria) - The Association of Employers in FBiH (UPFBiH) is dissatisfied with the FBiH Government's decision to limit, and essentially increase, the price of electricity by 20 percent for business entities in FBiH for 2024.

- Under the Law on Electricity in FBiH, many business entities will switch from public to market supply, through which Elektroprivreda BiH will earn an additional 25 to 28 million KM.

However, that is apparently not enough, so all the business problems of Elektroprivreda BiH will be shifted to the burden of the economy, i.e., citizens - said the president of UPFBiH, Adnan Smailbegović.

He reminds that in the previous two years, electricity for business entities in FBiH has already increased by 44 percent, and with the latest price increase, this increase will amount to about 72.8 percent.

- Businessmen in FBiH are facing another unnecessary burden that further deteriorates the business environment in FBiH and will likely cause a decline in economic activity next year - emphasizes Smailbegović.

UPFBiH welcomes the fact that the FBiH Government has partially considered the requests of employers and trade unions from the real sector and enabled the payment of two average salaries to employees in the real sector in the first six months of next year, without paying taxes and contributions on this payment.

- This is the result of our activities and lobbying in the competent ministries within the FBiH Government throughout this entire year. Of course, we would be more satisfied if the salary increase for workers up to 400 KM, with minimal tax and contribution payments, had been realized during this year, as we requested.

We call on all members, as well as employers who are not members of UPFBiH, to start paying the tax-free portion of salaries as early as February next year - states Smailbegović.

"We expect the FBiH Government to propose as soon as possible, and the FBiH Parliament to adopt, the laws on contributions and income tax, which will significantly reduce the burden on salaries, so that we have a significant reduction in labor costs from the middle of next year," added UPFBiH.