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Montenegro

DRAFT PROGRAM 05. 12. 2019.   >>  17:50 0

DRAFT PROGRAM

More than € 14 million for tax administration reform

Tax administration reform project is supposed to establish integrated information system as one of key mechanisms of taxpayers control, especially those in grey zone, and related activities will require investments amounting to €14,43 million in the next three years.

This was stated in the Draft Government Program for Economic Reforms for 2020 - 2022 period, a document Montenegro develops in the pre-accession phase, and it is open for public debate until December 23 this year.

The final version is to be adopted by the Government and then submitted to the European Commission by the end of January 2020 at the latest.

Segment referring to reduction of informal economy,analyzesplan of activities in fiscal areas, aimed at bringing unfair competition down to a minimum. The activities will be implemented by the Ministry of Finance.

This project, initiated last year, is aimed at the improvement of Tax Administration efficiency and reduction of costs for taxpayers.

“The result will be increase in competitiveness of legal entities that operate legally and increase in the efficiency of the work of Tax Administration. Reduction in the level of informal sector can have an impact on the increase in unemployment of those who have been working in the grey zone”, reads the document.However, in the long run, conditions are created for a system based on healthy competition, which will contribute to raising living standards and reducing poverty, "the document states.

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