English

Government abolishes crisis tax

Bojan Paunović

After seven years, Government of Montenegro finally decided to abolish crisis tax, meaning that personal income tax will now amount to 9%. This tax was introduced in 2013, as one of the measures of fiscal consolidation.

Mr Bojan Paunović from the Ministry of Finance points out that we won’t have higher rate of the personal income tax.

He reminds that minimum wage was increased last year and tax on mandatory health insurance was reduced and that salary burden was additionally reduced.

“Public finances in Montenegro are still in the process of fiscal consolidation. Why is it important? Because those measures have direct negative impact on budget revenues. However, we must be aware that we must keep working on reducing tax burden”, stressed Mr Paunović.

 

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