Prime Minister Marković visits Chamber of Commerce: Paying taxes is first, not last duty of economy

Podgorica, Montenegro (20 December 2016) -- Prime Minister Duško Marković met earlier today with business people at the Chamber of Commerce. Regular annual meeting was also attended by relevant deputy prime minister and ministers.

The Prime Minister said that these meetings are opportunities for reviewing economic developments and what has been done, but also for enabling representatives of the executive power to hear first-hand how the Government can contribute to improving the overall business environment in the country, and state what it expects to be done in its partnership with the business community.

“I believe that you all agree with me when I say that this year has been one of the hardest for Montenegro after the restoration of independence. The year in which the previous government has pursued economic policy in a very unfavourable international, as well as domestic environment. I would not have argued the arguments for such an assessment, because I believe all of us are familiar with them and experienced in a way the severity of the environment in the previous year.
I will remind you that the previous Government has started several major infrastructure projects, such as the construction of the first section of the Bar-Boljare highway, the continuation of the construction of the undersea energy cable between Montenegro and Italy, signing a contract for the construction of the Block II of the Thermal Power Plant, and oil and gas exploration in our seabed, as well as significant projects in the field of tourism. These were the promises of the former Prime Minister Đukanović when he met with you in this place exactly a year ago. Previous Government has also achieved key tasks in 2016, namely the preservation of macroeconomic stability and increasing competitiveness,” the Prime Minister explained.

He pointed out that respect for the law represents a significant contribution to the business.

“I am referring to something that should be understood if we are talking about a successful business, but in our practice, unfortunately, it is not often the case. What we are talking about is strict adherence to the laws and procedures.

I wish, therefore, to state clearly: we will not find pleasure in that nor do we want to deal with it, but if we have to, overall tax and financial discipline will be provided through increased inspection and uncompromising sanctioning of violations of the law. Both the Government and business people must clearly establish the practice that the fulfilment of obligations to the State is the first, not the last duty. I am talking about frequent planned induction of financial insolvency and bankruptcy in order to outsmart the state and business partners, and, in parallel, to open new companies and continue business operations. Such negative practices should be stopped, because they devastate healthy tissue of any economy. Therefore, in addition to structural reforms with direct fiscal impact, the Government will concentrate its efforts on further strengthening of the rule of law and contract execution security.”

The Prime Minister said that the Government will build partnerships exclusively with regular taxpayers.

Speaking about the budget for 2017, he stressed that the Government's position is that there is no increase in tax rates in order to retain attractiveness of Montenegro as an investment destination and that criticism of individual measures are unfounded, and are more results of manipulation than the reflection on the state budget for 2017.

Prime Minister Marković called on representatives of the local business community to communicate with the Government, as foreign business people do, because the Government treats all business initiative in the same way, regardless of whether they come from local or foreign business people.

“These days, I have met with the most important foreign investors in order to eliminate any obstacles to their business in our country. I have to say that these meetings had been arranged thanks to proactive approach and initiative of investors. I wish such initiatives to come from the Montenegrin business people as well, because it would be valuable to hear new ideas about your projects.”

With regard to political environment that affects the business, Prime Minister Duško Marković noted that the opposition has been repeatedly urged to return to the Parliament, but that the Government will not exhaust itself by sending messages if they do not come in the right way to those who need to hear them, as it becomes illusory.

The Prime Minister told the business people that the Government will consider carefully the problems from practice the business community is facing, adding that the Council for Competitiveness will be established soon. The Government expects the council to make a contribution to eliminating obstacles towards further improvement of the business environment and increased competitiveness of Montenegro.