The Parliament today concluded its debate on a set of tax and customs laws, which, according to opposition MPs, create a business environment that is not favorable for attracting quality investments, while government representatives believe that the arrival of investors depends on political stability.
Minister of Finance, Novica Vuković, explaining the Proposal for Amendments to the Law on Excise Duties, said that a semi-annual increase in the amount of specific excise duty on cigarettes is proposed, which would amount to 58,85 euros per thousand pieces as of January 1.
“These provisions propose the introduction of a new excise tax calendar with a minimum excise tax expressed in absolute amounts per thousand cigarettes, thus ensuring more stable budget revenues and greater predictability in tax policy developments,” said Vuković.
The proposed amendments improve the system of refunds of excise duty on mineral oils, especially in the part relating to agriculture, industry, heating, air and maritime transport.
The draft law on the rescheduling of tax receivables of local self-government units, funds, public institutions and enterprises founded by local self-government units will provide incentives to resolve their situation regarding the payment of tax liabilities, i.e. enable them to reschedule their tax debt.
It is envisaged that tax claims based on corporate income tax, personal income tax and value added tax, as well as contributions for mandatory pension and disability insurance, mandatory health insurance, unemployment insurance and contributions to the Labor Fund can be deferred.
“The rescheduling of a tax debtor’s tax claim includes deferring payment of the tax claim in multiple equal monthly installments, depending on the amount, up to a maximum of 120, as well as the write-off of interest and procedural costs incurred in connection with the tax claim,” added Vuković.
He also explained in detail the proposed amendments to the customs law, as well as the law on contributions to mandatory social insurance, on tax administration and on personal income tax.
Vuković also presented the Draft Law on the Classification of Activities, as well as amendments to the Law on the Customs Service.
Democratic Party of Socialists (DPS) MP Andrija Nikolić said that investors are not coming to Montenegro because the business environment is uncertain.
He added that with good investments comes knowledge, experience and projects, and that he would be very concerned if he were the Minister of Finance.
“Montenegro is today the most expensive country to live in the region. Salaries and pensions have increased so much, and the standard of living of citizens has stagnated. This is a serious problem,” said Nikolić.
He said that Montenegro faces the so-called Greek scenario if it continues to miss opportunities.
Democratic Montenegro MP Zdenka Popović stated that quality foreign investments come to a country where there is legal security and political stability, and that criticism that investors are being driven away by introducing a progressive corporate tax rate of a maximum of 15 percent is unacceptable.
“The statement that we are driving investors out of Montenegro through tax and excise policy is malicious and politically manipulative,” said Popović.
Europe Now Movement MP Dražen Petrić said that current public finances are stable and favorable.
“All trends when it comes to revenues show that all the adopted reforms were correct,” said Petrić.
He recalled that Montenegro is preparing for a strong investment cycle and that work is currently underway on 13 infrastructure projects across the country.
Speaking about the cigarette market, Petrić stated that in a few years the legalization of cigarette trade has doubled, which means that the state can generate excise revenue.
Social Democrat (SD) MP Boris Mugoša said that the Ministry of Finance has been forced to find new revenues, as spending is growing incredibly.
He also asked where the investments were.
“I would like you to have brought investors and I will congratulate everyone you bring, but in a situation where you haven’t brought anyone, don’t criticize those who brought them before,” MugoÅ¡a said.
He said that the Government, due to unproductive and irrational spending, must increase excise duties and taxes.
“Everything it can increase, it has increased, the only thing it does not touch is the general VAT rate,” MugoÅ¡a emphasized.
The Assembly will vote on these proposed acts at a later date.
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