News in English     | 06.02.2020. 17:26 |

Milićević: Results of the Reform Agenda visible in the Federation of BiH

FENA Senka Trgovčević

SARAJEVO, February 6 (FENA) - Finance Minister of the Federation of BiH, Jelka Milićević today after a session of the Government of the Federation of Bosnia and Herzegovina said that the results of implementation of the Reform Agenda, such as the payment of the first pensions from the Treasury Single Account, and the improvement of the business environment are visible to everyone.

“It seems to me that the Reform Agenda has created good preconditions and all these results are gradually showing,” said Milićević.

Also, one of the tasks of the Government was to do everything possible within the existing tax rates to increase collection, reduce room for informal economy, unlawful operations and create equal conditions for all economic entities.

“One of those items was the Fiscal Sector Reform (FAR) project we signed with USAID. Certainly, there was a need to review and analyze all non-tax revenues and fees and para-fiscal levies. Namely, the Government's commitment is to create conditions for retaining existing rates or even relieving labor costs, but on the other hand, within our jurisdiction, the constitutional rights to lower levels of government individually make decisions, laws and regulations on 'non-tax benefits'. For these reasons, with good cooperation between municipalities and cities, it was concluded that enough room should be created to harmonize these fees throughout the Federation of BiH,” explained Milićević.

There are more than 3,000 such levies, and they have been proven to be unjustified because they offer no return service. They were also adopted without major basis in legislation.

“After the establishment of the Registry, we have enabled the web site of the FBiH Ministry of Finance to show how much these fees account for in particular areas. The next step is to pass legislation that will create an obligation to report benefits. In accordance with the incentive policy, we have the right to call upon lower levels of government to harmonize fees and to reduce them in some way. They largely influence where potential domestic and foreign investors will be able to invest,” Milićević added after the government session at which the Bill on a Single Registry of Fees and Contributions in the FBiH was established.

Due to said activities, the Fiscal Coordination Body within the FBiH Ministry of Finance is composed of the FBiH Minister of Finance, ten cantonal finance ministers and a representative of the Union of Municipalities and Cities.

Milićević also confirmed that none of the former Aluminij Mostar workers would be denied the right to register with the employment bureau, to be compensated from the bureau by years of service and that everyone would have health insurance.

She says the potential investor in Aluminij Mostar, the Abraham Group, is interested in renting certain plants for the time being, but details will have to be provided by the Supervisory Board of the company.

She also referred to the fact that at present, there are 530,000 employees in the Federation of BiH, which is the record number since the existence of the FBiH, that is, "the highest number of people who are employed and whose salaries are covered by taxes and contributions."

“This number of employees, which has been increasing over the past four years, is due to the stabilization of the Pension and Disability Insurance Fund. When we took office, we found a deficit. Everything that was later done in the FBiH was done towards additional employment. We have provided 50 million KM for the first employment and self-employment,” concluded Milićević.

(FENA) S. R.

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