The company Plantaže, the largest agricultural producer in Montenegro and a key player in the country’s wine industry, has expressed deep concern regarding the proposed amendments to the Property Tax Law, currently under review in Parliament.
According to Plantaže, adopting these changes would have serious and long-term negative consequences for the company’s operations, as well as for all agricultural producers in Montenegro. The company stresses that at a time when Montenegrin agriculture needs support and a stable regulatory framework, the proposed amendments go in the opposite direction. If adopted, these changes could endanger not only the future of Plantaže but also the sustainability of Montenegro’s agriculture sector as a whole.
The company highlights that the proposed amendments would create discrimination based on municipal affiliation, as local governments would be allowed to determine the percentage of tax reduction on properties used for agricultural production, ranging from 20% to 90%. This would lead to unequal practices among producers in different municipalities, potentially resulting in agricultural producers in one municipality receiving minimal tax reductions, while others could benefit from significant reductions. This contradicts the fundamental equality principles guaranteed by the Constitution.
For example, while the capital city, Podgorica, proposed a 20% reduction, the municipality of Pljevlja suggested a 90% reduction, and other municipalities, like Bijelo Polje, did not propose any reduction at all. Plantaže argues that the current law, which mandates a 70% reduction for all producers, is the only fair and systemically correct solution, as it prevents inconsistent practices and potential fiscal discrimination among producers.
If the proposed amendments are adopted, Plantaže, along with many other producers, will face additional economic burdens. This would be particularly harmful at a time when the industry is also coping with the introduction of excise taxes on still wines, further threatening the sustainability of business operations and competitiveness both domestically and abroad.
Agriculture, as a strategic sector of Montenegro’s economy, deserves a stable, predictable, and uniform tax framework. Plantaže argues that if the intention behind the proposed changes was to provide further relief to agricultural producers, the proposal should have focused on reducing the tax rate from 70% to 90%, rather than introducing the range of 20% to 90%.
The company further criticizes the proposal for potentially undermining agricultural producers’ rights to tax reductions, citing the retroactive nature of certain provisions in the proposed amendments. They point out that such retroactive application contradicts Article 147 of the Constitution, which prohibits retroactive law application unless required by public interest. This provision raises concerns regarding legal certainty, as it conflicts with established constitutional principles and judicial practices.
Plantaže has called for the rejection of the proposed amendments, urging the protection of agricultural producers. The company advocates for fair, systemic, and long-term sustainable legal solutions, without room for inconsistent application and interpretation that could lead to further instability in the sector.
In this regard, Plantaže appealed to all members of Parliament to reject the proposed changes, as they do not serve the best interests of Montenegro’s agricultural development, nor the preservation of national production and brands. Instead, they call for adherence to existing laws and consistent application of provisions that protect the rights of agricultural producers and ensure stability in this vital sector of the economy.
Preserving domestic agriculture and national brands should be a priority, according to Plantaže. The company will continue to protect its legal rights before the relevant authorities but believes that this issue must be addressed systemically, with the support of those responsible for creating fair and sustainable laws.
