FBiH Employers' Association: If incentives are not introduced, we will lose both the economy and the population

(Patria) - The Employers' Association of the Federation of Bosnia and Herzegovina insists on the urgent adoption of a set of laws in the field of public finance, which will have a reform character and which will truly result in the requested reforms in terms of significant relief for the economy and improvement of the business environment. The FBiH Employers' Association demands that the FBiH Government urgently implement the conclusion of the House of Representatives of the Parliament of the Federation of BiH from April 10 this year and submit amendments to key reform laws to the parliamentary procedure.

"From the FBiH Employers' Association, we insist on a drastic reduction in contribution rates and expect the adoption of such a Law on Contributions of FBiH that will not be mere cosmetics of the current situation, but a substantial reform of the area which we all agreed is overburdened at this moment. We are aware that in making decisions, the FBiH Government must take into account the stability of budget revenues and extra-budgetary funds. And precisely for this reason, we proposed that the FBiH Government, through amendments to the laws, commit to continuously working on reducing contribution rates in line with general development and growth of budget revenues until they reach the level of 26.5 percent, which is the rate that employers in FBiH consider a true reform and development rate," emphasize the FBiH Employers' Association.

Furthermore, it is necessary to significantly raise the non-taxable part of wages, introduce tax relief for reinvestment, abolish and reduce parafiscal charges, stop the extortion of health insurance funds from employers when discussing sick leave costs, significantly increase the minimum wage, and undertake a whole series of other measures that will improve the business environment. While all countries in the region and EU countries are continuously working on reducing public levies from the real sector and citizens' pockets, here new levies are being introduced and existing ones are being increased.

Additionally, the FBiH Employers' Association notes that in the last three years, FBiH has recorded an increase in budget revenues of 1.3 billion KM, but not a single KM of the funds generated by this growth has been returned to the economy. A significant trend of growth in public revenue collection continues this year. This means that conditions have been created for significant relief for the economy while simultaneously preserving the stability of the budget and extra-budgetary funds.

"The cosmetic changes that the FBiH Government is preparing are a smokescreen for employers and workers and essentially benefit the public sector again. Gentlemen, if you do not react immediately in accordance with the proposals of the FBiH Employers' Association, you will soon not have to do anything, because you will be left with both no economy and no population," emphasize the FBiH Employers' Association.

Therefore, the Employers' Association of FBiH calls on the Government and Parliament of FBiH to act responsibly, to stop talking about reforms that are not reforms, and to finally start acting. The burden of reforms must be evenly distributed, so that the results and benefits of the reforms are felt by everyone, from the budget, extra-budgetary funds, employers, workers, and ultimately citizens, who are precisely legal and financial instability driving them to leave Bosnia and Herzegovina. The FBiH Employers' Association is ready to take its share of the burden.