Employers' Association in FBiH calls on the FBiH Government to sign the Agreement on the Implementation Plan for Fiscal Reforms

(Patria) - The Employers' Association in the Federation of Bosnia and Herzegovina has sent an official invitation to the FBiH Government to
sign the Agreement on the Implementation Plan for Fiscal Reforms, which arose from previous agreements reached at meetings of the Economic-Social Council of FBiH and other bilateral and joint meetings. The Agreement defines the dynamics and goals of reforms aimed at reducing excessive fiscal burdens based on contributions and taxes, with the goal of improving the business environment in the Federation of BiH.

Employers have been warning for years, and especially after the adoption of the Decision on the amount of the minimum wage for 2025, about excessive fiscal burdens that hinder business operations, reduce the competitiveness of the domestic economy, directly affect workers' net income, and hinder the creation of new jobs. Accordingly, the proposed Agreement defines concrete reform measures and dynamics, in line with the Government's announcements, which will relieve the real sector and enable long-term economic growth.

The Agreement envisages:

- Law on Fiscalization of Transactions in FBiH – planned for adoption and implementation by July 1, 2025;
- Law on Contributions and Law on Income Tax – in two phases: first, a partial reduction of contributions by September 1, 2025, and then a final reduction to 28.5% from January 1, 2026.

These reforms are crucial for the survival and development of the economy in the Federation of BiH, and their implementation will directly impact the increase in investments, improvement of workers' standards, and creation of new jobs. The Employers' Association proposes that the Agreement be signed by the end of the month so that reform processes can begin without delay and so that competent institutions, social partners, and the public can monitor its implementation.

"Any further delay of reforms additionally jeopardizes business operations, economic growth, and the standard of our workers and citizens. It is time for concrete steps to replace years of stagnation and for decisive steps to be taken towards creating a more favorable and competitive business environment. We support the Government's announced measures and will contribute to their realization," state from the Employers' Association in FBiH.

The Association welcomes and expects a positive response from the FBiH Government, the signing of the Agreement, and the readiness of all relevant institutions for constructive cooperation in the realization of this important reform process.