Business Community Calls for Reforms: Law on Transaction Fiscalization to be Adopted by End of July, Law on Contributions as Soon as Possible

(Patria) - Representatives of the Employers' Association in FBiH, the American Chamber of Commerce in BiH, the Council of Foreign Investors, the Foreign Trade Chamber of BiH, the Representative Office of German Business in BiH, and the Chamber of Commerce and Industry of FBiH held a meeting on July 15, 2025, with the aim of joint action towards further improvement of the business environment in the Federation of BiH, through the implementation of announced fiscal reforms.

Representatives of the business community sent a letter to the Government of FBiH and expressed support for the 5.5% reduction in employer contributions, which came into effect on July 1, 2025, as an important step towards relieving the economy, strengthening the competitiveness of domestic companies and crafts, and creating conditions for increasing net wages. It was emphasized that this step represents a positive signal for domestic and foreign investors, but that the actual effects will only be achieved after the realization of the complete, two-stage reform of the fiscal system.

In this regard, representatives of the business community demand that the Law on Transaction Fiscalization in the Federation of BiH be adopted by July 31, 2025, as a key measure to introduce greater transparency and combat the grey economy. Furthermore, they insist on the prompt adoption of a new Law on Contributions, which would set the total contribution rate at 28.5%, with application starting from January 1, 2026, in accordance with previous initiatives and expert recommendations.

"As we have already entered the second half of the business year, it is expected that the competent executive and legislative bodies, as well as the Economic and Social Council, will fulfill their obligations and take concrete measures within the foreseen deadlines," they state.

The associations remind that the announced second phase of fiscal reform is of key importance for ensuring a stable business environment, which would enable easier business operations, new employment, and additional investments.

In circumstances where the economy is suffering the consequences of changes in the European and global markets, reform steps by domestic authorities are the only instrument that can effectively contribute to the preservation and development of the economy of the Federation of BiH. Therefore, the urgent implementation of fiscal reform is a condition for improving the competitiveness, stability, and sustainability of business in FBiH.

Representatives of the business community, signatories of this statement, once again emphasize the importance and urgency of implementing key legal solutions, call for their adoption within the announced deadlines, and express their readiness to provide expert support and advisory capacity to the Government of FBiH and other competent institutions in the realization of long-awaited reforms.