On July 15, 2025, representatives of the Employers' Association of the Federation of BiH, the American Chamber of Commerce in BiH, the Foreign Investors Council, the Foreign Trade Chamber of BiH, the Delegation of German Industry and Commerce in BiH held a joint meeting to discuss coordinated action toward improving the business environment in the Federation of BiH through the implementation of the announced fiscal reforms.
The business community representatives sent a formal letter to the Government of the Federation of BiH, expressing support for the reduction of the employer-paid social contributions rate by 5.5%, which came into force on July 1, 2025. This measure is seen as a significant step toward easing the tax burden on businesses, enhancing the competitiveness of domestic companies and entrepreneurs, and creating conditions for increasing employees' net income. It was emphasized that this is a positive signal for both domestic and foreign investors, but that the full benefits will only be realized with the implementation of the complete, two-phase fiscal reform.
In this regard, the business community urges the adoption of the Law on Fiscalization of Transactions in the Federation of BiH by July 31, 2025, as a key measure for increasing transparency and combating the grey economy. They also call for the swift adoption of a new Law on Contributions, which would set the total contribution rate at 28.5%, to take effect on January 1, 2026, in line with previous initiatives and expert recommendations.
As we have entered the second half of the business year, the business community expects the relevant executive and legislative authorities, as well as the Economic and Social Council, to meet their obligations and take concrete measures within the announced timelines. The associations underline that the second phase of the fiscal reform is of critical importance for establishing a stable business environment that will enable easier operations, new employment opportunities, and additional investments.
In light of ongoing challenges in European and global markets, the business community sees domestic fiscal reform as the only viable tool for preserving and developing the economy of the Federation of BiH. Therefore, the urgent implementation of these reforms is essential to improving competitiveness, stability, and the long-term sustainability of business operations.
The undersigned business community representatives once again stress the urgency and importance of adopting these key legislative measures, call for their implementation within the proposed deadlines, and express their readiness to support the Government of FBiH and other relevant institutions with expert advice and technical assistance in implementing these long-awaited reforms.
