Montenegro’s Tax Administration (PU) collected €599.2 million in gross revenue during the first four months of 2025—€5.4 million more than in the same period last year.
The growth in collection is attributed to a combination of factors, including stronger fiscal discipline, improved voluntary compliance, enforcement measures, and actions against illegal business practices, the PU stated.
Value-added tax (VAT) collection reached €167 million, up €27 million or 19% compared to the previous year. Corporate income tax collection amounted to €192 million—€12.6 million (7%) more than in 2024.
However, social contributions collected totaled €127.4 million, marking a decrease of €55 million or 30% year-on-year. The drop follows the October 2024 reduction in pension and disability insurance (PIO) contribution rates: employee contributions were cut from 15% to 10%, and employer contributions from 5.5% to 0%, making the total PIO burden 10% for all payers.
Despite lower contribution rates, the PU emphasized that the overall budget revenue trend remains positive.
The Tax Administration also announced plans to ramp up field activities during the upcoming summer tourist season to ensure stable budget inflows.
