Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Niksic, announced that the FBiH Government has approved the Draft Law on Fiscalization of Financial Transactions, a key move toward comprehensive fiscal reform.

Following an urgent government session focused on fiscal reform, Niksic shared his view that recent efforts to provide one-time aid to workers revealed employers’ reluctance to bear added costs. He expressed doubt that lowering contributions alone would significantly boost employment rates.

Niksic explained that the new fiscalization law aims to create a real-time online fiscalization platform, with parliamentary approval anticipated by year-end. If adopted, Bosnia and Herzegovina would join a select few European countries with such advanced fiscal tracking.

The government plans to monitor budget revenues closely and, based on the results, will consider amendments to the Law on Contributions to ease the tax burden on employers and improve conditions for workers.

Additionally, a Law on Amendments to the Law on Income Tax will be fast-tracked to the FBiH Parliament. These amendments, aligned with the FBiH Labor Law, introduce “work performance” as a non-taxable category, benefiting workers.

Niksic noted that the new income tax law will set the stage for a decree on minimum wages by year’s end, which will secure income protections for about 270,000 workers earning under 1,000 Bosnian marks (some €500), as identified by the FBiH Tax Administration.

He also announced an urgent decree for one-time pensioner assistance, expected to be disbursed by November without waiting for budget revisions. The required 37 million marks will be sourced through budget reallocations.

Finally, Niksic stressed the government's careful approach to fiscal responsibility, highlighting that no additional debt has been taken on beyond the approved budget revenues.