November 15 (SeeNews) - The government of Bosnia's Federation has proposed legislative amendments that would increase personal income tax to 13% from 10% but will cut total salary contribution rate to 32.5% from the current 41.5%, the Federation's prime minister Fadil Novalic said.
The new regulation would apply only to employees with net wages higher than 2,440 marka ($1,400/1,200 euro), Novalic said in a Facebook post on Friday.
The Federation's government also plans to introduce a 10% tax on dividend income, interest income on savings and real estate trading, as well as on all gambling revenues.
The Federation is one of two autonomous entities that form Bosnia and Herzegovina. The other entity is the Serb Republic.
(1 euro = 1.95583 marka)