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Press release from 124th Cabinet session

Published on: Jun 7, 2019 1:38 AM Author: PR Service
Podgorica, Montenegro (6 June 2019) -- At its 124th session, the Montenegrin Cabinet passed the Draft Law on fiscalisation in the sale of goods and services, with the Public Debate Report, which had been endorsed by the Competitiveness Council earlier this week.

The proposed law, which is one of the key normative solutions in the field of the fight against informal economy, regulates the procedure of fiscalisation of cash and non-cash payments in the sale of goods and services, the content of the fiscal account, the fiscalisation bonds and other issues of importance for the fiscalisation that will come to effect on 1 January 2020. The electronic fiscalisation system, which should replace the existing obsolete fiscal cash system, enables the interaction of tax authorities, taxpayers and citizens through the transmission and monitoring of data in real time, or through efficient transaction control. The goals of adopting the new law include, inter alia, efficient control of transactions and delivery of products and services, gradual reduction of the tax administration and creation of conditions for efficient management of tax controls and forced collection procedures using exact data on the operations of taxpayers.

The Government passed the Draft Law on the Final Account of the Budget of Montenegro for 2018.

The 2018 budget deficit is lower by 28.7%, and budget spending, apart from development projects, is in surplus by EUR 152.83 million (3.3% of GDP), which confirms that current expenditures are financed from current of revenues, thus fulfilling one of the main goals defined by the Fiscal Strategy. The surplus of the current budget for 2018 is higher by 198.21% or EUR 101.81 million compared to the previous year. Capital expenditures in 2018 amounted to 390.98 million euros, which is 0.73 percent more than the budget plan, and 35.81 percent more than in 2017. The main reason for increasing capital expenditures is the intensification of works on the construction of the priority section of the Bar - Boljare.

The Cabinet also passed the Draft Law Amending the Law on Defence, which was harmonised with strategic documents in the field of security and defence. The draft law regulates the competencies of the Government of Montenegro, the Defence and Security Councle and the Ministry of Defence, defines the tasks of the Intelligence Security Directorate, prescribes the management of military air traffic and the jurisdiction to decide on the use of force in the airspace of Montenegro against civilian and/or military aircrafts, as well as codification and quality assurance in the field of defence. Accordingly, the draft law provides for the possibility of engaging military reservists in peace, contrary to what the existing law envisages - that they can only be engaged in conditions of war or emergency. The Defence and Security Council has, according to the proposed amendments, the authority to propose to the Parliament to send a request to the North Atlantic Treaty Organisation for the activation of Article 5 of the North Atlantic Treaty.

The Government adopted the Twenty-first Quarterly Report on the overall activities in the process of Montenegro's integration into the European Union for the period January-March 2019. The report contains a cross-section of realised activities in the areas of: political dialogue, accession negotiations, public information on the process, activities of the Committee on European Integration of the Parliament of Montenegro, implementation of the Stabilisation and Association Agreement, harmonisation of the legislation of Montenegro with the legal acquis of the European Union and the Instrument for Pre-Accession Assistance - IPA.

The Cabinet adopted the Information on the Amendments to the Bilateral Agreement between Montenegro and Albania, concerning the IPA Cross-border Cooperation Programme Montenegro - Albania 2014-2020. The need for amending the Agreement, which came into force on 1 November 2019, resulted from the institutional changes in the participating countries, changes in the structure of the Operating Structure in Albania, as well as certain legal and technical corrections in the text of the document.

The Government adopted the Programme for development of agriculture and rural areas of Montenegro within IPARD II - 2014-2020 version 1.2. defining measures that will enable the use of IPA II funds in this area, aimed at improving competitiveness, increasing product added value, creating new jobs, improving living in rural areas, and linking with tourism. The discussion emphasised that the aim of the Programme is to prepare the Montenegrin farmers for the EU as much as possible through the use of IPA II funds, which will lead to improvement of product quality, increased production volumes, greater competitiveness and the achievement of the EU food safety standards in the primary and manufacturing sector.

At today's session, the Government adopted the Action Plan for the suppression of illegal exploitation of river waters from the watercourses. In order to continue with further activities during the moratorium on the exploitation of gravel and sand from river beds, which was introduced in April 2017 to further enhance the concern for the protection of river flows and protection against water and the suppression of illegal exploitation, the Action Plan has been developed in order to achieve more effective control over illegal exploitation, ensuring continuous monitoring and reporting on the status of watercourses.

The Government adopted the Concession Plan for the exploitation of riverbed (gravel and sand) from the Lim river and Grnčar river basins.

The Cabinet adopted the Information on the enforcement of the Recapitalisation Contract for "New Tobacco Combine" AD Podgorica, with the Report on Fact Findings by "Ernst & Young" d.o.o. of 10 April 2019 and the Initiative of the Investor for resolving the status of monetary role of the Government of Montenegro in the "New Tobacco Combine" AD Podgorica. Based on the audit report, the Government found that the company BMJ Industries FZ-LLC of the United Arab Emirates fulfilled the obligations envisaged by the Contract and accepted the initiative of the investor that relates to the sale of the remaining 1.45% of shares in the company.

The Government adopted the Information on the results of 2018/2019 winter tourist season. The discussion showed satisfaction with the results, since 153,795 tourists visited Montenegro, which is 33.37% more than in the previous season, and there were 296,291 overnight stays, which is 15.83% more than in 2017/18. In addition to the municipalities in the north, where there are winter ski centres, there is also a good attendance of the central and coastal regions, which is an indicator that Montenegro is approaching one of the goals set - to become a year-long tourist destination.

Today's session adopted the Programme of incentive measures in the field of tourism for 2019/2020, as well as the Programme of incentive measures in the field of tourism to support marketing activities in the emitting markets for 2019/2020.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO
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