Montenegro: Low capital investments and increase in tax revenue in 2013

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Montenegro: Low capital investments and increase in tax revenue in 2013

zivkovic.jpg

Jelena Zivkovic

According to the annual budget adopted late December, for the current year the government is planning for €1.26 billion ($1.68 billion) and foreseeing various increases in tax revenues. The planned budget deficit is expected to reach 2.73% of the GDP while the planned GDP growth rate has been set at 2.5%.

To realise all development plans to support planed growth, the government will take additional €250 million of financial credit funds.

One of planned measures for increasing tax revenues is raising the tax rate on salaries from 9% to 15%. Additional savings of €30 million are planned by freezing pensions in 2013.

The business community has been reacting generally negatively to the planned allocation of only €65 Million for capital investments of which €33 million will be spent on infrastructure projects.

The tax revenue is estimated to reach the levels of approximately €1.08 billion. This will largely be a result of the expected increase in VAT revenue collection. The government justifies this growth by the expected increase in exports and imports as well as the relative stabilisation of spending.

Jelena Zivkovic (jelena.zivkovic@eurofast.eu)

Eurofast Global, Podgorica Office, Montenegro

Tel: +382 20 228 490

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
The deal to acquire ITR's parent company is expected to complete by the end of May 2025
JBS, the biggest meat company in the world, allegedly used Luxembourgian ‘mailbox companies’ to avoid taxes between 2019 and 2022
Despite the conviction of Jessa Dabalos, the Tax Practitioners’ Board’s investigative work continues with five outstanding PwC scandal probes
Heads of tax need to push their teams forward as strategic business advisers to add value across their organisations, says Sandy Markwick
Scott Bessent reportedly felt undermined by Musk naming Gary Shapley as acting IRS commissioner; in other news, Baker Tilly will combine with a top 15 US firm
The promise of nine years’ tax certainty and a ‘rational and pragmatic’ government process makes APAs a no-brainer, Indian tax advisers tell ITR
Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Gift this article