Montenegro adopts amended proposal on 2013 personal income tax hike.

By bne IntelliNews January 29, 2013
The Montenegrin parliament approved on Monday, Jan 28, a temporary increase in personal income tax, under which gross monthly salaries of below EUR 720 (EUR 479 in net terms) will be exempt from additional taxation but the tax on all earnings above this limit will be raised to 15% instead of to 12% as earlier planned, state radio and TV broadcaster RTCG reported. Montenegro is trying to raise more budget revenue via provisionally lifting its current 9% flat tax on personal income, which is among the lowest in Europe. Initially the government said it wants to lift the current tax to 12% for gross monthly salaries of above EUR 400 and thus raise some EUR 11mn and cut expenditure by around EUR 5mn on an annual level. Yet, the parliament adopted an amended version of the proposal after days of negotiations between trade unions and the finance ministry and threats of public unrest. The measure should remain valid by end-2013, according to the initial plan. Some 124,000 workers will benefit from Monday's amendments to the proposal on the crisis tax, finance minister Radoje Zugic was quoted as saying by news agency Mina Business.

Related Articles

Montenegro says to borrow EUR 220mn this year, down 12% than planned.

Montenegro's government said it decided on Thursday, March 21, to reduce to EUR 220mn from EUR 250mn the amount it plans to borrow this year for financing its budget spending and servicing ... more

Montenegro reports increased budget revenue in Q1.

Montenegro's budget revenue increased by 11.5% y/y to EUR 195mn in the period from January 1 to March 20 due to higher profit tax, social contributions and VAT inflows, news service ... more

Mobile phone penetration in Montenegro drops to 155.5% in Feb 2013.

Mobile phone penetration in Montenegro dropped to 155.5% at the end of February 2013, from 159.81% at end-Dec 2012 and 163.66% a year earlier, the latest figures of the telecommunications agency ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335