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Economic policy: Increase of economic competitiveness

Narodna Skupština

The increase of economic competitiveness in Srpska is one of the key objectives of the Government in the coming year. This will be achieved primarily through the stimulative fiscal policy, the completion of the reform for starting a business, elimination of administrative barriers, the upgrade of innovation and technology, the construction of new road infrastructure and branding of domestic products.

In the economic policy for 2014, adopted by the National Assembly of Republika Srpska, additional fiscal relief is planned with the aim of increasing competitiveness, as well as further reforms of the business environment after the one-stop business registration system is implemented.

“With the introduction of an income tax allowance of 200 KM, the economy will save 80 million KM. The government has already adopted special ways of settling tax debt to ease the financial position of disadvantaged business entities”, says the document.

The Government of Republika Srpska, during 2014, will establish a register of all “parafiscal” contributions, after which additional obligations won’t be possible without its consent.

The economic policy emphasizes that with the relief of the economy and further financial discipline it will try to blend part of the informal economy into the regular flow of business, as well as to boost activities of the Tax Administration in order to minimize the number of employers who calculate taxes and contributions at the level of a minimum wage.

In 2014 the Government will amend the Srpska Law on Bankruptcy to shorten the procedure and allow for more transparency in the entire process.

Furthermore, the removal of administrative barriers and the improvement of business conditions in all areas of the economy will lead to a significant increase in the competitiveness of the Srpska economy.

The economic policy emphasizes that one of the priority actions in further development of the business environment is the simplification of procedures in the field of Physical Planning, Civil Engineering and Ecology.

The document states that activities on the amendment of the Spatial Plan of Republika Srpska are in their advanced stage, adding that the preliminary, draft and proposed plan is expected soon and will receive final approval in the first quarter of 2014.

Furthermore, the economic policy reads that scholarships to talented young researches will be awarded throughout 2014 and efforts will be made to strengthen the innovation- research infrastructure.


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