FBiH Employers' Association calls on parliamentarians not to vote for contributions and income tax laws

SARAJEVO, (Patria) - The Employers' Association of the Federation of Bosnia and Herzegovina welcomes the renewed activity of the Government of the Federation of Bosnia and Herzegovina and its work on adopting reform laws. Unfortunately, the draft laws on contributions and income tax of FBiH, which the FBiH Government determined on Thursday, although called reformist, are essentially more cosmetic than reformist. The Employers' Association of FBiH is aware that sending these draft laws into parliamentary procedure is a direct consequence of the pressure from representatives of certain international financial organizations, but the least that could be expected from the FBiH Government was to propose laws on contributions and income tax that would be reformist in their essence, not just in name.

The explanation for adopting these draft laws claims that it is a neutral reform, which is not true at all. Calculations made by the Employers' Association of FBiH indicate that if these laws are adopted, state revenues will increase by 1.5-2%.

Even if it were a neutral reform, which it is not, the question arises as to why work on something for four years, and at the same time there will be no changes. Especially, no relief for the economy and no increase in wages for workers in the private sector, which is one of the goals of the reform agenda.

UPFBiH emphasizes that, if adopted, the proposed draft laws on contributions and income tax would lead to relief for higher salaries received by public sector employees, while lower salaries would be further burdened, which would lead to new burdens in the real sector, which is already under great pressure from various state levies.

- Instead of relieving the real sector, the adoption of these draft laws would lead to new burdens - emphasize UPFBiH.

The Employers' Association of FBiH expects and hopes that the deputies and delegates in the Parliament of the Federation of BiH will act in the interest of those who elected them, show economic patriotism, and refuse to protect the interests of the IMF by not adopting the draft laws on contributions and income tax in the form proposed by the FBiH Government. We are sure that the parties will not take the risk, voting for the proposed laws, four months before the elections.