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

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

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

The UK’s Labour government has an unpopular prime minister, an unpopular chancellor and not a lot of good options as it prepares to deliver its autumn Budget
Awards
The firms picked up five major awards between them at a gala ceremony held at New York’s prestigious Metropolitan Club
The streaming company’s operating income was $400m below expectations following the dispute; in other news, the OECD has released updates for 25 TP country profiles
Software company Oracle has won the right to have its A$250m dispute with the ATO stayed, paving the way for a mutual agreement procedure
If the US doesn't participate in pillar two then global consensus on the project can’t be a reality, tax academic René Matteotti also suggests
If it gets pillar two right, India may be the ideal country that finds a balance between its global commitments and its national interests, Sameer Sharma argues
As World Tax unveils its much-anticipated rankings for 2026, we focus on EMEA’s top performers in the first of three regional analyses
Firms are spending serious money to expand their tax advisory practices internationally – this proves that the tax practice is no mere sideshow
The controversial deal would ‘preserve the gains achieved under pillar two’, the OECD said; in other news, HMRC outlined its approach to dealing with ‘harmful’ tax advisers
Former EY and Deloitte tax specialists will staff the new operation, which provides the firm with new offices in Tokyo and Osaka
Gift this article