Employers in FBiH demand fiscal reforms and warn of excessive parafiscal burdens

The Association of Employers in the Federation of Bosnia and Herzegovina (UPFBiH) has released a document titled ‘What Employers Expect from the Authorities,’ outlining critical priorities for economic reform. Key demands include continuing fiscal reforms through amendments to the Law on Contributions, reducing employer obligations, and harmonizing tax policies and minimum wage regulations.

UPFBiH leadership, including President Nihad Imširović, emphasized the need for modernizing labor legislation, implementing the Law on Fiscalization, and enacting new laws regarding employment mediation and social security for the unemployed. The association also seeks improvements in workplace safety, trade regulations, and the establishment of specialized commercial courts.

An analysis by the association highlights a significant burden of parafiscal charges. The Register of Taxes and Fees contains approximately 2,800 entries, with over 1,300 potential obligations facing a single company during investment phases. These include various municipal, cantonal, and federal fees, many of which are ‘ad hoc’ payments triggered by construction or expansion efforts. Employers warn that this fragmented system increases administrative costs and complicates the investment climate.