News in English     | 20.06.2018. 13:28 |

Milićević: Employers' complaints and fear are unfounded (VIDEO)

FENA Muhamed Hadžibegić

SARAJEVO, June 20 (FENA) - The FBiH Finance Minister Jelka Milićević stated today in Sarajevo that employers’ complaint that the state, with additional contributions would reduce income, is unfounded because they already have difficulties with finding certain profile of workers because no one wants to work for 700 KM for example, and 55 percent of all salaries registered in FBiH are up to that amount, as the workers can earn a lot more in Croatia or Slovenia, not to mention other EU countries.

Milićević said at a press conference presenting the Draft Law on Income Tax and the Law on Contributions that the intent of the FBiH Government and the FBiH Ministry of Finance is to create a model for calculating contributions and income tax comparable to the numbers similar in RS, and in the countries of the former Yugoslavia and beyond.

“What we have had in BiH as a part of non-taxable remuneration does not exist anywhere else, and that is why we were incomparable for potential investors because they thought that the labor cost in our country was too big, but if deeper analysis is to be made, it turned out that almost 50 percent of the salary is non-taxable,” Milićević said.

She also emphasized that Bosnia and Herzegovina is one of the few countries that has not taxed the profit because it is not the profit of the company but the profit of the owner, and this was in fact used for paying that tax-free part of the salary to the workers.

“I understand increased activities of the employers' associations as well as the fear of workers that their salaries will be lower, but I think that their fear is unnecessary,” concluded Milićević.

Watch http://www.fena.ba/video/1892/

Download https://drive.google.com/drive/folders/1tM81Q92EXffggBY0PxmSCQFQE6_DgxM8?usp=sharing

(FENA) S. R.

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