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The Social Democratic Party’s deputy chairman and EU representative said that additional increases in VAT and excise taxes would not only lead to a significant increase in inflation, but would also not have the expected financial impact on the budget. Petar Oddiqi.
As he announced, the tax rate always follows the lower percentage of collection, so we will see an increase in the prices of all products, while in the budget, on the other hand, we will not achieve the effect and replace the funds that are already missing.
“We already have a higher VAT rate than Croatia, an EU member state, and of course a much higher inflation rate. Therefore, we wait for prices in Montenegro to surpass those in European metropolises. We must not allow these coercive measures to “patch loopholes” with populist measures! This season has shown that simultaneously raising VAT in tourism leads to a significant increase in prices, which does not allow us to be competitive on the market, so we get the effect I mentioned, higher prices but less money in the state budget, a product of a rather bad season,” says Audic.
As he said, returning VAT to 7% for all caterers would make Montenegro more competitive, while also filling the budget better with a better season.
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