“Growth of the Montenegrin economy among the largest in Europe”, official says

“Growth of the Montenegrin economy among the largest in Europe”, official says

The reported profit and tax collection is evidently increasing in Montenegro, which indicates that the economy in this country is doing better business. The tax administration collected € 75 million in corporate income tax in 2019, up six million, or nine percent, from 2018. This is three million euros more than planned. This was announced during a recent meeting between President of the Chamber of Commerce of Montenegro Vlastimir Golubović and Director of the Tax Administration Miomir M. Mugoša.

According to the Montenegrin Chamber of Commerce, the meeting discussed economic developments, based on the analysis of the Montenegrin Economy in 2019 by the Chamber of Commerce, with an emphasis on areas that are the focus of these institutions.

Golubović said the dynamic growth of the Montenegrin economy is continuing at a rate that is among the largest in Europe. The biggest contributors to growth are investments, which in 2019 were more than 15 percent over the previous year. The results recorded in numerous industries, primarily tourism, construction, trade, which is accompanied by an 8.2 percent increase in employment, assure that this trend will continue.

Mugoša presented the results of the Tax Administration in the previous period.

“The growth of economic activity directly affects the fiscal potential, which directly depends on the amount of tax revenue. The tax administration best recognizes that Montenegro has significant tax potential, which is also significantly contributed by 4,385 new businesses in 2019”, Mugoša said.

Tax collection is also influenced by the growth of taxpayers’ fiscal culture, which enables the Tax Administration to apply less repressive measures.

“In the previous four years, we collected 4.168 billion euros in taxes, exceeding the target by 201 million”, said the director of the Tax Administration, adding that in 2019, 80 million euros were collected more than planned.

In the previous four years, the level of tax debt due decreased by EUR 210 million. At 31 December 2019, it amounted to EUR 378,142,829.

A total of € 62.7 million was collected over the course of the tax debt reprogramming program, and Mugoša expects this amount to exceed € 100 million over the next two years.

“The tax administration is also in this way supporting the sustainable operation of businesses”, he said.

During the meeting, the President of the Chamber reiterated an earlier initiative of this association that, in the process of electronic fiscalisation, businessmen, especially small ones, should not be burdened with the cost of acquiring the necessary equipment, but that these costs should be borne by the Government./ibna