This week’s session of the National Assembly of Republika Srpska was marked by the actions of two mayors, Drasko Stanivukovic of Banja Luka and Ljubisa Petrovic of Bijeljina, who drew attention but ultimately failed to achieve their goals. Meanwhile, the government passed a series of laws, including tax reforms impacting small businesses and freelancers.

Despite protests outside the assembly, lawmakers adopted amendments to income tax and contributions laws, introducing the concept of “independent professions” into the legal system.

“The aim is to separate taxation of professional and intellectual services from small businesses, ensuring taxation is based on actual income and economic strength,” explained Slobodanka Popovic, Assistant Finance Minister of Republika Srpska.

The opposition criticized the lack of alignment with previous legislation, including potential unconstitutional taxation of aggregated incomes for independent entrepreneurs and their relatives performing similar activities.

Journalists and freelancers are among the affected groups. While the tax threshold was raised from 50,000 KM to 100,000 KM, journalists who work for multiple outlets or freelance now face challenges.

“Freelancers earning 1,800 KM would need to cover an additional 2,700 KM for taxes and contributions,” said freelance journalist Ljupko Miseljic, calling the new law punitive and unsupportive of independent workers.

RS Prime Minister Radovan Viskovic defended the changes, stating, “Everyone must be taxed. Many online portals and other entities are not part of the system, despite significant earnings.”

The changes, however, are expected to increase costs for small businesses, including higher taxes, fiscalization expenses, and potential electricity price hikes, forcing many to operate on the margins of legality or close entirely.