The boycott of retail chains is harmful, primarily to domestic producers, whose already fragile production base is at risk, as well as to the state budget, which heavily relies on daily inflows from value-added tax (VAT), stated the Chamber of Commerce (PKCG).
“A boycott of retail chains is also a boycott of all participants in the product creation and pricing process. This includes domestic producers, importers, distributors, employees, and the state budget,” the PKCG said in a statement.
The Chamber added that the boycott also impacts the stability of the budget, as it is funded in part through VAT, which is included in the product price.
“Key societal sectors, such as education, healthcare, and social welfare, as well as the entire government apparatus, are funded from the budget. Paradoxically, the salaries in these sectors often exceed those in the real sector, which generates them,” the PKCG emphasized.
They pointed out that relevant analyses show that if ten EUR is spent on domestic products, eight EUR remains in the country. However, if spent on imported goods, only two EUR remain in Montenegro.
“If nothing else, the risk to domestic production alone should prevent any thoughts of boycotting retail chains,” the PKCG stated.
They believe that the dialogue PKCG has initiated on this and related topics should be intensified to avoid decisions that could negatively impact the economy and slow its growth.
The PKCG reiterated that they do not support any form of boycott against their members, regardless of the sector in which they operate, considering it unjustified, as such an approach directly affects the economy and the state’s economic interests.
“Furthermore, and no less importantly, the economy is not responsible for the challenges that are being attempted to be solved in this way,” the PKCG emphasized.
They reminded that representing and securing the interests of the entire Montenegrin economy is the task and legal obligation of the PKCG, and that it is their duty to firmly oppose anything that disrupts economic flows, with the risk of slowing down economic growth.
“Particularly, we stress the need for non-discrimination in every economic field and toward every company, underlining that a boycott as a way of influencing economic policies is neither rational nor justified,” the PKCG concluded.
