The members of the Montenegrin parliament adopted late last night the budget rebalancing, as well as a set of laws foreseen in the Fiscal Strategy, on the basis of which, starting in October, citizens should receive higher earnings at the expense of reduced contributions for pension disability insurance (PIO), as well as laws that should provide additional revenues.
Thus, the minimum salary will increase from 450 to 600, or 800 euros, depending on the educational level, and the tax burden on employers will also decrease. This is the essence of the Europe Sad 2 program implemented by the Government of Prime Minister Milojko Spajić.
The essence of the program is the abolition of the employer’s previous obligation to pay employees five percent of their earnings into the Pension and Disability Insurance Fund (PIO).
In addition, part of the contributions that the employees set aside in the same percentage, instead of going to that Fund, will be transferred to salaries.
The plan has caused numerous criticisms, from the president of the country to the opposition and experts.
The set of laws envisages the introduction of value added tax (VAT) on books, cultural content, online trade, income from the Internet, online games and winnings from games of chance, income from additional activities, and work for two or more employers.
A new VAT rate of 15 percent has been introduced, which will treat accommodation and food in catering establishments uniformly. The scope of the excise tax was expanded and an excise tax was introduced on “still” wines, which will be taxed to plantations in the full amount of 25 cents per liter, while small winemakers will pay half of that amount.
The Assembly also adopted amendments to the law on corporate income tax, and on the write-off of interest on tax liabilities, if the principal debt is paid.
Representatives of the opposition assessed that this is not a technical, but an essential rebalancing, problematizing the deficit that will be increased by 1.4 million, and the huge costs of work contracts and consulting services, representation and official trips.
Representatives of the authorities claim that these are not new taxes, but an attempt to introduce them into legal channels, Beta writes.
