The policy on taxing the meal compensation and tax return enacted by the FBiH Government is not the solution that will improve the business environment in Bosnia and Herzegovina, but an additional burden for the already burdened employers.


According to the new Policy of the Government, the meal compensation exceeding 8.5 BAM will be taxed and the employers will have additional costs while paying tax returns exceeding 400 BAM. The previous limits were higher and it was possible to balance between paying taxes to workers' salaries and additional payments, such as meal compensations and tax returns.


Bosnia and Herzegovina currently has laws that burden the employers with paying the greatest percentage of contributions on salaries in the region. 


napaceni privrednik


Although Prime Minister Fadil Novali? states that this decision will have a "neutral fiscal effect", we would like to draw the attention to the fact underlined by the employers - that the total income of workers will decrease. We believe that a change was made in a wrong sequence and that the contributions to salaries should have been reduced prior to adopting the amendments of the Policy on implementing the Law on Income Tax. As stated by the employers, such reforms could result in an effet opposite to the desired one and lead to massive terminations of employment. 


This sequence of changes represents a direct impact on the workers and it is a worrying fact that the FBiH Government is not considering this.


This measure will primarily affect those who already have small incomes, including youth who are not appreciated in the labor market and are often underpaid.


A reform agenda that aims to create a better business site must not be implemented on employees' harm which is constantly emphasized by the Union and the Employers' Association of FBiH.


A Network for creating a better business environment, "BH Business Site", managed by the Institute for Youth Development KULT, is sending an appeal to the Government of FBiH to prolong the implementation of this Policy and invest its time in resolving key problems of employers, including contributions.


The "BH Business Site" is an initiative that aims to resolve system problems in the employment sector in BiH that aggravate investments in development and opening new workplaces, such as the inadequate distribution of budget incentives for programs and active measures of fighting unemployment, the burdening of the economy with an inadequate concept of tax payment and high contributions to workers' salaries.


 

The conference entitled "Partnership between Local Actors for Development and Employment" was held on July 12 and 13, 2016 in Mostar.


The aim of the conference was to strengthen the connections between the participants involved in the employment, training and requalification projects. The conference participants discussed education and adult employment, social inclusion and rural and local development.


The discussion also revolved around the role of training, requalification and lifelong learning in emplyoment and entrepreneurial initiatives, particularly those directed towards youth and the socially excluded groups.


konferencija mostar


The "GoraĹľde Model" was also presented as an example of good practice and work, along with the SEC Banja Luka and Mostar, and the ILO project that will focus on emplyoment in local communities was also presented.


Challenges and manners in which organizations can contribute were defined for each thematic area with recommendations for improvement.


The conference was organized by TASCO BiH in partnership with the TASCO VESTA Resource Center, and a representative of the Institute for Youth Development KULT also participated in the conference. 


 

Conference entitled “Reforms and Employment: State and Perspectives” was held in Sarajevo on June 23, 2016.


The conference was attended by representatives of legal and executive government, resource institutions and facilities, political agents, civil society organizations, employers’ associations and unions, academic community, international and diplomatic representatives and the media, and the aim was to create a summary of the realization and efficiency of the reforms initiated during the previous year, primarily through the Reform Agenda. During the conference, open dialogue was used to contribute to a better understanding of the planned, the expected and the implemented reforms and  to focus on effective and measurable outcomes, primarily for the purpose of opening new workplaces.   


The Civic Initiative Centers (CCIs) recently published a detailed report entitled “The State of the Nation” that provides a precise overview of the implementation of the Reform Agenda at different levels of government as well as a review of effects on the business climate and competitiveness, the labor market, social and pension policy, public finances, public administration and rule of law and the influence of all the above on the state of the living standard of citizens.


konferencija CCI


Also, parallel to the monitoring of implementation and effectiveness of the Reform Agenda, the CCIs also prepared a framework analysis of the active employment policies in BiH that premiered during this conference to become an additional incentive to discussion and recommendations towards more effective policies of opening new workplaces which is one of the primary aims of the Reform Agenda.  


During the conference, it was emphasized that it is praise-worthy that the reform processes and Reform Agenda were agreed upon and coordinated at all levels of authority in BiH, but that the implementation dynamics was still at a modest level. The participants also made criticized the technical difficulties in the realization of the Provision on Employment Incentives. The necessity of realizing the measure referring to the separation of the obligatory health insurance from the function of employment mediation was also evaluated as urgent.


The conference, organized by the CCIs, was attended by a representative of the Institute for Youth Development KULT.


 

A meeting of the Network for Budget Responsibility, organized by the Center for Presenting Civic Interests Foundation (CPI Foundation), was held in Banja Luka on June 14, 2016.


This is the first meeting of the Network held in Republika Srpska. The previous work of the Network on suggestions of amendments to entity laws and comments to the law of the district, which should result in the legal obligation of publishing a Budget for the Citizens was presented during the meeting.  


banja luka mreza


In reference to the future work of the Network for Budget responsibility, the meeting participants considered auditing the existing and awarding new tasks to the Network members. Non-implementing the program budgeting which is stipulated the Law is one of the main obstacles towards budget transparency and its better understanding for the citizens. A strong support for the activities of the Network was expressed by all meeting participants, along with governmental and civil society representatives. The recommendation of the gathering was to focus the activities of the Network on problems of internal audit, audit of effect and content of report on budget realization in the following period.


The Network for Budget responsibility was founded as a part of the project entitled “Advocating towards Budget Responsibility and Civic Participation” conducted under the Civil Society Sustainability Program (CSSP) in BiH and financially supported by the USAID and coordinated by the CCI and CPCD. The goals of the Network are to increase the transparency in the sector of public finances as well, as a precondition to an increase in civic participation in monitoring the control of public finances.


The meeting was attended by a representative of the Institute for Youth Development KULT.


 

The Federal Ministry of Development, Entrepreneurship and Crafts (FMRPO) published a Public Call for selecting the FMRPO current transfer funds grantees. The Public Call will stay open until June 17, 2016, and this year, funds will be allocated for incentives to women and youth entrepreneurship, innovators, projects funded by the EU and other donors, traditional and old crafts, associations, chambers and educational institutions, newly-founded SMEs, improving institutional entrepreneurial infrastructure, technical coordination and strengthening competition of technologically modern SME subjects.


The Federal Ministry of Development, Entrepreneurship and Crafts will be allocating around 5 million BAM this year to aid and support the economy.


jasmin i zukic


 The Institute for Youth Development KULT is providing support in the process of informing youth, women and persons with newly founded businesses, primarily on the manners of applying for the Call.


The Public Call was published on May 18, 2016 and the details of the Call as well as the manners of application were presented at a press conference organized by the Institute of Youth Development KULT and the FMRPO.


The Public Call is available at the website of the Ministry: www.fmrpo.gov.ba


 

Institute for Youth Development KULT addressed the initiative to change the Law on VAT to the Bord of Directors of the Indirect Taxation Administration.


It is an initiative that the Institute uses to advocate for changes in the Law on Value Added Tax that would result in:


  - the taxpayers paying for VAT according to chared and not issued invoice for delivered goods and services and have the right to input tax deduction after paying for the delivered goods and services to their suppliers;


    - the VAT payment deadline would move from the 10th to the last day of the month for the previous month.


The changes relate to taxpayers whose annual turnover of goods and services (without VAT) does not exceed 1 million BAM.


The initiative started in the beginning of March, 2016 and has so far been supported by over 30,000 business owners gathered around chambers of economy and crafts and by associations that focus on aiding the economy.


okrugli sto


These changes are supported by the Chambers of Crafts of Central Bosnia, Tuzla, Zenica-Doboj, Una-Sana, Posavina and Sarajevo Canton, the Chamber of Economy of Sarajevo and Banja Luka, Mostar, the Chamber of Economy of Bosnian-Podrinje Canton of Goražde, Chamber of Economy of Tuzla Canton, Una-Sana Canton, Zenica-Doboj Canton, Chamber of Economy of FBiH, “Kupujmo i koristimo doma?e” (“Buy and Use Domestic Products”) Association and the Association for Improving Economic Relations between Germany and BiH, the Association of Employers of FBiH and individual business owners.


According to current legal provisions, the employers are obliged to pay for their taxes despite not having collected their receivables. This makes many business subjects insolvent and often forces them to terminate their business.


Advocating for the changes in the Law is conducted as a part of the "BH Business Site" initiative, managed by the Institute for Youth Development KULT and which is the part of Civil Society Sustainability Project in Bosnia and Herzegovina (CSSP), realized by the Centers of Civil initiatives (CCI) and the Center for Promoting the Civil Society (CPCD) and supported by the US Agency for International Development (USAID). 


 

A conference entitled “Promoting More Efficient Transitions to Working Life in Bosnia and Herzegovina”, organized by the European Training Foundation (ETF) was held on May 25, 2016, in Sarajevo.


The conference focused on finding manners for efficient planning and implementation of activities that will be used to increase the possibility of employing persons without a job. The aim was to incite the exchange of practices and experiences between decision makers and experts from ministries, agencies and other organizations specializing for issues of employment, development of skills, social inclusion, youth, statistics and representatives of social partners, NGOs and international organizations and other relevant actors in BiH.


The attendants were introduced with experiences of fighting unemployment in Italy and Mrs. Marianna D’Angelo from the Ministry of Labor of Italy presented the Guarantee for Youth program that resulted in reducing unemployment for around 700,000 people.


konferencija zaposljavanje


Positive examples of the Networks of Public Employment Services of the EU were presented and there was discussion about the manners of improving availability and using evidence in developing employment policies and the efficiency of active employment measures in the economies of countries in transition.


The European Training Foundation provides support to countries participating the process of EU enlargement in order to provide a safer transition to working life and to fight against exclusion of youth and vulnerable groups form the labor market.


The conference was attended by representatives of the Institute for Youth Development KULT. 


 

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