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NewsMontenegro, AmCham: the draft law on joint contribution represents an unacceptable burden

Montenegro, AmCham: the draft law on joint contribution represents an unacceptable burden

According to the American Chamber of Commerce (AmCham), the draft law on joint contribution in Montenegro, which obliges companies with revenues of more than five million euros to pay an extraordinary tax, represents an unacceptable burden and a kind of punishment for the successful.

AmCham states that this indicates the bad practice of adopting measures that constantly destimulate the business environment, as well as the state’s chronic inability to provide resources by reducing the rate of the gray economy, the Mina agency reports, referring to Vijesti.

The Government of Montenegro, i.e. the Ministry of Finance, decided to propose this measure so that companies that gained additional profit during the economic crisis, thanks to government measures in the form of numerous incentives, would now show solidarity and that the burden of the crisis would be evenly distributed and enable the creation of new aid packages to the citizens.

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In the explanation of the Draft Law, the Ministry stated that despite the negative business conditions, some business entities are making increased profits and this increase in profits is noticeable in various activities.

The draft law Is under public discussion until March 20, and the “solidarity contribution” (tax on extra profit) is defined as a crisis measure for two years, that is, it will cover the period for last year and this year.

The Ministry also referred to comparative practice from EU countries that also introduced that tax (mandatory temporary solidarity contribution) defined by the EU regulation.

AmCham reminded that they constantly point to the importance of a predictable and stable business environment.

“In this context, the measures taken by the decision-makers do not instill confidence, and the conclusion is justified that far-reaching consequences for the business community and the economy in general are not taken into account, and the imposition of new expenses only sanctions successful companies that regularly lead the market game,” they said.
They added that the explanation of the draft does not offer convincing reasons for additional taxation, and that in some segments it even contains information that has been misinterpreted or presents the possibility of further misinterpretation.

AmCham said that the fact that decision-makers cannot deal with companies that are not registered is worrying, which is indicated in every report on the business environment, as well as through active participation in the work of the Competitiveness Council.

In AmCham, they believe that it is precisely these companies that should bear the pressure in the current circumstances, and not those that operate in accordance with applicable laws and regulations and regularly pay their obligations.

“We believe that the introduction of the mentioned measures will undoubtedly have a negative impact on the arrival of potential successful companies on the Montenegrin market,” AmCham said.

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