Montenegrin Government might give up on the planned VAT increase, said Prime Minister Dusko Markovic during a meeting in the Chamber of Commerce of Montenegro.
“When it comes to VAT, we have left 6 months open in order to overview the situation before officially introducing it into the system. We might give up on that plan once we understand all the factors. It is typically Montenegrin to fight about the future, instead of concentrating on the measures we can take now in order to minimize negative consequences”, the Prime Minister said.
Chamber of Commerce can always find a reliable partner in the Government.
Markovic said he would do everything necessary in order to ensure sustainability of the budget in this year. Fiscal strategy in the period between 2017-2020 introduces measures of increase in VAT from 19 to 21%, while the lower rate of VAT would remain at 7%.
Markovic said that the Government is very prudent in its decisions in order to ensure that the business environment remains fertile for quality business.
“Foreign investors are necessary, but we must also have a well developed national business community”, Markovic said.
President of the Chamber of Commerce Velimir Mijuskovic said that the Analysis of fiscality on the national and local level, done by the Chamber, demonstrated concrete issues.
“Administrative fees are high and non-proportional to the services”, Mijuskovic said.
According to him, any increase in VAT represents further limitations to development of commerce.
Owner of Celebic company Tomislav Celebic said one of the issues is the efficiency of decision-making in local institutions, as well as grey employment.
