Montenegro's Cabinet proposes set of judicial laws, tax incentives for investments in high-profile tourism

Podgorica, Montenegro (26 December 2014) –  With a view to harmonising Montenegro’s taxation system with the EU acquis and removing unnecessary business barriers, the Montenegro Cabinet, at its yesterday's session, approved the Law Amending the Law on Value Added Tax. Given the importance of advancing business environment end competitiveness of the Montenegrin economy, the Government also proposed the introduction of tax incentives for investments in high – profile tourism projects and construction of five stars hotel, as well as the construction and equippment of facilities for electricity production.

The Cabinet also approved the Proposal for the Law on Courts and the Proposal for the Law on the Judicial Council and the rights and duties of the judges.

Proposal for the Law on Courts introduces the misdemeanour system in the regular judicial system through establishing courts for minor offenses and the Supreme Court for minor offenses, as well as the reorganisation of the commercial courts by establishing a single Commercial Court in the municipality of Podgorica for the entire Montenegrin territory, whereas the Commercial Court in municipality of Bijelo Polje ceases to exist.

Centralisation of the competences for organised crime, corruption, war crimes and terrorism within the Podgorica Supreme Court’s jurisdiction, prescribed for by the proposal for the law, is of a particular importance for conducting criminal proceedings more efficiently. The Government stated that the new law will result in more efficient and rational performance of the courts aimed at strengthening independence of the judiciary as a basic aspect of the rule of law.

Proposal for the Law on the Judicial Council and the rights and duties of the judges establishes the unique system for electing judges at the national level in a more transparent and merit – based manner. The law also envisages the introduction of periodic evaluation of judges’ work and merit based job promotion, as well as the permanent assignment of judges from one court to another on a voluntary basis and review of disciplinary procedures for judges.

The Government also approved the Proposal for the Law on Weapons and Comparative Analysis for procedures of accusing and issuing sentences for criminal acts committed by using weapons. The Government underlined there has been an increase in criminal acts committed by abusing weapons, which significantly jeopardises the country’s security and safety of its citizens. In that regard, the Government stressed that the punitive policy of the judicial system is inadequate, adding that the law enforcement authorities should undertake all necessary measures to suppress the misuse of weapons.

Regarding the Law on Customs, the Government approved amendments aimed at improving tax discipline and more efficient tax and other levies payment which will cause a greater influx in the budget.

With a view to creating conditions for achieving development goals of Montenegro's strategic industries, the Cabinet proposed amendments to the Customs Law allowing exemptions from tariffs on equipment and materials for the construction and equippmet of five stars hotels, energy and agricultural manufacturing facilities.