Smailbegović: Introducing additional burdens on employers must be accompanied by a reduction in contributions and taxes

The Economic and Social Council and the Employers' Association of FBiH have once again stated that the introduction of the by-law on taxation of meal allowances, transport allowances, and holiday bonuses, without a reduction in contributions and taxes, can only cause damage to employers, as well as to employees. Its implementation is scheduled to begin on October 3, and an answer is still awaited from the FBiH Minister of Finance, Jelka Milićević, regarding the date of a meeting to try to find a solution to avoid damage to employers and the economy itself.

The President of the Employers' Association of FBiH, Adnan Smailbegović, told the Patria News Agency that only a package of the Law on Contributions and the Law on Income Tax would make sense.

- If the by-law on taxation of meal allowances were to be implemented, and then a new law were passed a month or two later, it would cause complete confusion. As employers, we requested a first step that would be neutral, meaning it would not be an additional burden on employers - says Smailbegović, explaining that the FBiH Government should find a solution so that there is no damage to employers, employees, funds, or the budget.

Smailbegović believes that the main problem in Bosnia and Herzegovina is unemployment, and that the state must create an environment to increase employment.

- If we increase employment, we solve a large part of the problem. The first step is to reduce contributions, and the grey economy will immediately decrease, leading to new revenues for the funds. If you have a bad environment, people will look for loopholes in the law. It doesn't matter to the employer whether they pay contributions or income tax, but it matters to the state. Contributions go to the funds, and taxes go to cantons and municipalities. This is a demanding job, and we are open to offering some solutions - says Smailbegović.

The President of the Economic and Social Council, Edhem Biber, told NAP that the initiative to adopt a new law on income tax should be accelerated, and the implementation of the by-law on taxation of meal allowances should be postponed.

- According to the reform agenda, the adoption of these laws is planned for the last quarter of 2016. The task of the reform agenda is to reduce burdens on the economy in order to create jobs - says Biber.

Safudin Čengić, owner of Centrotrans, believes that the implementation of the by-law on taxation of meal allowances would be an additional burden on employers.

- It is irresponsible to talk about introducing burdens without a reduction in contributions and taxes. It should not be introduced separately under any circumstances - believes Čengić.

Čengić is clear that meal allowances of 5 to 7 KM per day should not be taxed, as it should be considered an addition to the employee's salary.

He added that the authorities should be more considerate of employers and, instead of postponing the implementation for two months at a time under pressure, they should sit down and create a clear plan of what to reduce and what to increase without harming employers.

We remind you that a meeting of 150 employers from FBiH with Prime Minister Fadil Novalić was held on Wednesday, which ended without an agreement. As stated by the Employers' Association of FBiH, the Government is only declaratively in favor of relieving the economy, while the legislative authorities have introduced more than ten regulations imposing new burdens in the last year alone.