Montenegro’s Parliament has approved a new set of economic laws, effective September 1. Key changes include reducing pension contributions for both employers and employees, and introducing a uniform 15% VAT rate on accommodation and food services. Excise duties have been expanded to include “quiet” wines, with Plantaže paying 25 cents per liter and smaller wineries paying half.
Finance Minister Novica Vuković explained that the budget revision addresses salary increases for the education sector, subsidies for employers hiring people with disabilities, interest payments, and other funding needs. The capital budget remains unchanged, but 3 million euros have been reallocated to the Ministry of Defense for NATO obligations.
The revised laws also include VAT on books, cultural content, online trade, and gambling winnings, and introduce a 15% VAT on hospitality services. Amendments to laws on corporate income tax, personal income tax, and social insurance contributions were also adopted.
Critics, including Boris Mugoša (SD) and Zoja Bojanić-Lalović (DPS), argue that the changes could harm cultural sectors and increase costs for tourists. They also criticized the increased VAT and excise duties for potentially burdening citizens. The government defended the changes as necessary for fiscal stability and legal compliance.
The debate was marked by political disputes and accusations over the impact of these measures on citizens and the economy.
