Employers' Association in FBiH Supports the Start of Fiscal Reform

(Patria) - The Employers' Association in FBiH supports the conclusions from today's sessions of the Economic-Social Council and the Government of FBiH, at which the Government presented and adopted the Proposal for a Law on Amendments to the Law on Contributions, which provides for a reduction of contributions by 5.5, i.e. from 41.5 to 36 percent.

"The proposed legal solutions are the first step of the announced fiscal reform since 2009, following the already undertaken fiscal interventions that the Government implemented with the aim of mitigating the consequences of the Decision on the amount of the minimum wage for 2025 through the adoption of three decrees.

This concrete move by the Government is an important encouragement to support business in FBiH, along with other expected measures, which implies the adoption of the Law on Fiscalization of Transactions in FBiH, the Law on Income Tax, the Law on Corporate Profit Tax, and others.

If the Proposal for a Law on Amendments to the Law on Contributions, as adopted today, is passed and the application of the newly proposed contribution rate begins on July 1 of this year, in combination with the extension of the validity of the Decree on assistance to workers through the payment of a non-taxable portion of income up to 450 KM until the end of the year, it would be a useful model for reducing contributions borne by employers until the implementation of the full reform and the reduction of contributions to below 30 percent, starting from January 1, 2026.

Employers will give their full contribution, especially in the transitional phase of the launched fiscal reform, and we hereby invite businessmen, craftsmen, trade unions, but also representatives of the authorities to jointly harmonize and improve the implementation of the adopted solutions, with the aim of ensuring the necessary balance between the burden on the real sector's operations and preserving the sustainability of the PIO/MIO funds, healthcare, and others," it was stated from the Employers' Association in FBiH.