Social Democrats (SD) MP, Boris Mugoša, announced that in that party they expect the support of the majority of MPs for their proposal to amend the Personal Income Tax Act, which foresees the introduction of a non-taxable part of earnings.
Mugoša announced that the Government submitted to the Assembly an opinion that the proposed amendments to the law, which the party submitted a month ago, should not be accepted.
"Deputies of the SD will put forward the Draft Law, which provides for the introduction of a non-taxable part of the salary, for the agenda of the next session of the Parliament, and we believe that it will receive the support of the majority of deputies. After all, most parliamentary parties are in favor of a system of progressive income taxation", Mugoša stated in the announcement.
Mugoša said that SD is absolutely ready to accept any amendment aimed at improving the legal text.
He believes that the introduction of the non-taxable part of earnings is a fiscal measure aimed at improving the position of employees, as the result should be an increase in their net earnings, in addition to the fact that costs for employers will not increase.
"It is also a measure that does not tax the part of the salary that serves to cover the subsistence minimum and the benefits of which would be felt by a large number of employees, i.e. all those whose salary is below the average in Montenegro", stated Mugoša in the announcement.
He also said that this is a measure that would contribute to the increase of personal consumption of a large number of citizens, which has fallen significantly due to the negative consequences of the COVID-19 pandemic, and which would have a positive impact on the business environment, i.e. the position of both employers and employees.
"It is also a measure that is socially just, because it will provide additional funds to all those who receive earnings below the average and essentially represents a form of progressive taxation", announced Mugoša and reminded that this measure exists in almost all countries of the region and most countries of the European Union (EU).
He said that with the proposed solution, there would be a minor "burden" on the state budget, because the additional funds of the employees would be returned to the system through increased personal consumption.
Mugoša also stated that Montenegro has the lowest income tax rate in the region, but due to the non-existence of a non-taxable part, a higher amount of income tax is paid than in most countries of the region.
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