Billions of convertible marks collected from indirect taxes, salaries and pensions do not follow the rise in prices, demand for loans has increased

(Patria) - Indirect tax revenues in the first seven months of 2025 amounted to 6 billion and 850 million KM, an increase of 355 million KM or 5.5% compared to the same period in 2024 when they amounted to 6 billion and 495 million KM.

In the first seven months of 2025, the Administration refunded VAT to taxpayers who legally qualified for a refund in the amount of 1 billion and 274 million marks.

Net collected revenues distributed to beneficiaries in the first seven months of 2025, namely the state, entities, and Brčko District, amounted to 5 billion and 576 million KM, an increase of 5.2% compared to revenues distributed to beneficiaries in the first seven months of 2024. The difference in July alone between 2024 and 2025 is 29 million KM.

For the first seven months of 2025, the amount of 580 million KM was allocated for financing state institutions. The remainder of the collected indirect tax revenues went to the entities and Brčko District. Thus, the Federation of BiH received 3 billion and 69 million KM from the single account, Republika Srpska 1 billion and 719 million KM, and Brčko District 173 million KM.

While indirect tax revenues are growing month by month, the costs for citizens of BiH are increasing. Daily price increases for food, services, and then utility costs are burdening the already modest budgets of citizens in BiH.

The data on the number of employed persons is also not encouraging, as at the end of June there were 316,927 unemployed persons registered with the employment bureaus. While unemployment decreased by 237 persons in RS and Brčko District, it increased by 1,670 persons in FBiH. The Tax Administration of FBiH is expected to publish data for July regarding employment soon. During the first three months of 2025, there was a decrease in the number of employed persons in FBiH, and although the number has gradually increased, it is still not at the level of the number of employed persons at the end of 2024, which was 551,452.

Warnings from economic experts about the small difference between the number of pensioners and the number of workers in BiH are becoming louder, and if this trend continues or worsens, the pension fund from which pensions are paid, and which is funded by contributions on employees' salaries, will be jeopardized.

On the other hand, the growth of salaries and pensions does not keep pace with the growth of all other prices and costs, which significantly reduces the purchasing power of citizens. An increase in domestic loans by about 10 percent during 2024 is also noticeable, and it continued into 2025.

The average salary in FBiH is 1,590 KM, and in RS it is 1,564 KM, while the trade union's consumer basket for June 2025 amounts to 3,180 KM. The consumer basket includes food, housing and utility services, and other items.