Press release: Cabinet meeting

At todays meeting, chaired by Prime Minister Milo Djukanovic, the Montenegrin Cabinet adopted the Republic of Montenegro 2006 Budget Bill. According to the proposed law, overall revenues and expenditures are projected at 518,912,185. The Cabinet has found that the planned budget is well balanced and represents an obvious step forward in stabilizing the situation in public finances.

In accordance with the new Customs Law, the Cabinet has put forward the Tariff Bill. The adoption of the new piece of legislation is, among other things, necessitated by the need to align the current national tariff system with the European Unions integrated tariff, first and foremost, in terms of nomenclature. Application of the EUs combined nomenclature provides for unified coding and classification of goods and a possibility for electronic processing, which will help modernize the customs system and accelerate customs procedure.

In addition, the Cabinet has adopted the Excise Law Amendment Bill. The new bill introduces significant changes in the technique of calculating and paying cigarette excise tax. According to the proposed provisions, excise duties on cigarettes are to be assessed at the moment of receiving excise stamps and payable within 60 days of their receipt.

In pursuing the policy of encouraging entrepreneurial development, in the tourism industry in particular, the Cabinet approved the VAT Law Amendment Bill. The new legal provisions introduce a reduced rate of 7% on certain commodities and services and taxpayers are entitled to input VAT recovery. In addition, the amended law shortens the procedure for VAT recovery, from 90 to 60 days for local transactions and from 60 to 30 days for exporters.

Having considered and approved the Communication on the Status of the Negotiation Process for the Accession of the Republic of Montenegro to the World Trade Organization, the Cabinet adopted a series of conclusions, with a view to fulfilling its obligations.