Changing Laws in the process of realization of investment sends a message about an unpredictable business environment in BiH
At the meeting of the Director of the Foreign Investment Promotion Agency of BiH (FIPA) Gordan Milinić, the Director of the Association of Employers of FBiH Mladen Pandurević, as well as representatives of the company Natron-Hayat Maglaj and Sisecam Soda Lukavac Adis Mustabašić and Vejsil Huremović it was discussed on administrative obstacles that companies faced in running business in BiH, as well as on the proposed changes to the Laws on Income and Contributions that additionally burden the labour cost in FBiH in the amount of 5%.
On this occasion, the businesspeople pointed out that the proposed changes to the laws instead to stimulate the companies’ activities they further discourage existing investors, resulting in a reduction of investments and number of employees, in a situation of 27.7% of unemployed people in BiH.
Representatives of Sisecam Soda pointed out problems related to obtaining planning approval and a building permit in a situation where they decided to start building a new manufacturing plant and when they get credit resources, and now they have to wait almost one year to obtain the necessary permits to start implementing their investment. They also pointed out problems related to the slowness of the courts, citing the case that they waited five years to have resolved a labour dispute verdict.
This slowness of administration is unacceptable in a situation where we have fewer investments, and a growing number of unemployed. In addition, even though BiH has significant coal reserves, the company imports coal from Romania and Bulgaria.
Representatives of Natron-Hayat operating in 11 countries around the world, emphasized the fact that they will stop the planned capacity expansion in BiH, considering foreseen changes of these laws, as well as other administrative obstacles they face.
It was pointed out that changing Laws in the process of realization of investments sends a message about an unpredictable business environment in BiH, and it is not a common practice in the world.
It was agreed that FIPA intervenes within its jurisdiction before relevant institutions and authorities in matters related to the slowness administration, and that together with the Association of Employers FBiH continues to work on resolving administrative barriers for foreign investors.