FBiH Employers' Association: Let the Government publish calculations for the new income tax collection

The Employers' Association of the Federation of Bosnia and Herzegovina warns that the FBiH Government, in just two days, through press releases and specially prepared texts, is trying to deceive the public by presenting selective information. First, the public was informed about the FBiH Government's response to the request for an assessment of the constitutionality of Article 61, Paragraph 1 of the FBiH Law on Profit Tax from 2016, and then information emerged from the FBiH Government about how the calculation of the new Draft Law on Income Tax, according to which, allegedly, lower wages will not be additionally taxed, was announced, reports Patria News Agency.

- This is again a conscious deception of the public, because according to the budget that the FBiH Government presented at the session of the Economic and Social Council of FBiH, apart from wages lower than 700 KM, which after the expansion of the tax base, i.e., taxation of meal allowance, transport, and bonuses, and calculation of contributions, will certainly not be received by 55 percent of citizens as the FBiH Government states in its press release.

Therefore, the Employers' Association of the Federation of BiH calls on the competent authorities in the FBiH Government to publicly publish the calculations according to the Draft Law on Income Tax of FBiH, taking into account the Draft Law on Contributions of FBiH (as these two laws are adopted as a package) and present the complete calculation to the public.

The Employers' Association of FBiH has already partially presented the calculations it reached through its analyses, which unequivocally show that the application of income tax will mean an additional 50 to 60 million KM for the FBiH budget, i.e., an additional burden on the cost of labor, which will be collected from employees and employers.