Representatives of the Association of Employers of the Federation of Bosnia and Herzegovina (UPFBiH) made an appeal to the authorities at a press conference in Sarajevo two days ago, calling for concrete steps in fiscal reforms and measures to ease the burden on employers in order to improve the business environment.
The president of UPFBiH, Adnan Smailbegovic, stated that they decided to engage in dialogue with the authorities through the Economic and Social Council and that two decrees issued by the Government of FBiH, aimed at providing financial support to employers in response to the increase in the minimum wage, would partially mitigate the negative consequences.
Smailbegovic said that layoffs in companies, the growth of the gray economy, and a slowdown in economic growth and investments could be expected. He noted that UPFBiH welcomes the intention of the FBiH Government to introduce online fiscalization, which is a good way to contribute to the fight against the gray economy.
He pointed out the excessive number of employees in the public sector and that the ratio of pensioners to employees is one of the worst in Europe, with nearly one worker per pensioner, whereas in the European Union (EU), the ratio is one pensioner per 1.7 workers.
“This is an opportunity to call on the FBiH Government to keep the promise they made to us and implement fiscal reforms as soon as possible. These reforms will certainly be painful for some, but they are the only way out of this situation,” Smailbegovic emphasized.
UPFBiH Board Vice President Snjezana Kopruner, speaking about the problems faced by exporters, said that exporters are in a crisis that may be even greater than the one in 2008 and 2009.
“This crisis is particularly felt in the Western market. Germany, as the main export partner, especially for the metal industry, is experiencing a significant decline. The increase in minimum wages was a particularly hard blow for those who are not in the more profitable sectors of export,” Kopruner stated.
She added that exporters will also face issues next year related to the Carbon Border Adjustment Mechanism (CBAM).
“A CO2 levy is coming, and we lack the necessary laws. Exporters’ competitiveness will decrease because we do not have bylaws for renewable energy sources. Our drivers cannot spend more than 90 days in the EU. If this is not resolved, we will have to seek transport companies from the EU,” Kopruner emphasized.
UPFBiH Board Member Mujo Hasic, speaking about employment, noted that there are 250.000 unemployed individuals registered with employment offices, but no one knows how many of them are actively seeking work.
“These offices should be renamed unemployment registration offices. It would be good if, in the next few months, the Law on Employment Mediation and Social Security for Unemployed Persons finally comes into effect, as this law has already been awaited for about ten years,” Hasic said.
UPFBiH member Almedin Kadric, speaking about the trade sector, called for and expressed support for inspection authorities to check the formation of pricing calculations and margins, but also for educating the public on how prices are formed according to legally prescribed procedures.
He added that inspections had been conducted in the field and found that, regarding legal traders, everything was in order, with only minor irregularities detected. He called on inspectors to also check those operating without permits and who are not fiscally registered.
