Association of Economists Warns: We are concerned about the Government's Draft Law on Income Tax

The Association of Economists and Students of Economics Faculties 'SEEF' expresses concern about the new Draft Law on Income Tax in FBiH, which the Federal Government has determined and submitted to social partners for harmonization, it was announced from the Association, Patria reports.

- We draw special attention to the Government's proposal to abolish personal deductions, which is demotivating for families with children, or those planning to expand their families, and this is particularly not good in a situation where our country is facing a decline in birth rates - warns the Association.

The Government's Draft Law on Income Tax plans for salaries up to 600 KM to be non-taxable, while salaries above 600 KM are taxed by the state, regardless of the number of family members supported by the employee.
 
The Association of Economists and Students of Economics Faculties believes that such a Government proposal is not good. Reforms should encourage, not endanger, the birth rate.

- Low population reproductive norms and economic conditions that encourage emigration are the most important factors in the decline of the Bosnian-Herzegovinian population. Therefore, the successful implementation of measures to encourage childbirth, the acceleration and more successful implementation of economic and social reforms, along with the adoption of long-term sectoral policies, should be an imperative.

Encouraging the birth rate is a prerequisite for a young workforce that can be one of the drivers of economic growth and a competitive advantage in the global market. We appeal to government and non-governmental organizations to jointly embark on reforms that bring about fundamental changes and guarantee a bright future for Bosnia and Herzegovina and its citizens - state the Association, adding that if the reforms are set up and implemented qualitatively, it will directly affect the stability of the country and economic growth, which is the basis for improving the standard of living, increasing gross domestic product, better healthcare, education, and a better living environment in the country.