INFOGRAPHIC Yacht owners were awarded 40 million by the state

From 2018 to today, the state budget has lost around 59 million euros due to unpaid excise duties and value added tax (VAT) on the sale of fuel for yachts and ships, regardless of whether they perform commercial activities or are used for recreation, while from of this total, an estimated 40 million refers only to recreational yachts.

These are the data of the Ministry of Finance, which abolished the previous advantage for owners of luxury yachts to pour cheaper fuel when they enter Montenegro.

Rulebook by which the department of ministers Aleksandar Damjanović edited this issue entered into force on Saturday, that is, on the eighth day from the day of publication in the Official Gazette.

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"It is estimated that since 2018, the state has not collected about 59 million based on excise duties and VAT on the sale of fuel for the supply of yachts and ships, and in that amount, it is estimated that 40 million is only from yachts that are used for recreation. A smaller part of the lost income was related to the supply of vessels that are used for commercial, industrial and military purposes, and which will continue to be able to exercise this right," the Ministry of Finance said.

According to the ministry's calculations, from 2018 to May of this year, 103,9 million liters of fuel were sold for yachts, ships and other vessels in ports and marinas, the value of fuel alone without other duties was 47,7 million, while unpaid duties for excise taxes were 40,97 million euros, and for VAT 18,6 million.

Damjanović said that the Ministry and the Government, due to disruptions in the oil derivatives market, decided to abolish excise taxes on fuel for yachts.

"It is a decision by which the richest stratum of the population stands in solidarity with ordinary citizens and the economy, bearing in mind that the budget has been losing part of its money for years due to excise taxes on fuel for yachts. I will also remind you that the European Commission (EC) has repeatedly requested that the regulations governing this issue be harmonized with EC regulations. We understand the motives and arguments of people in the yachting industry, we expect their understanding of the overall situation in Montenegro, especially the fact that cheaper fuel compared to everything else cannot be the only motive for the arrival of yachts in Montenegro," Damjanović told "Vijesta" yesterday.

"We should not forget the other benefits that the state gave for the development of the yachting industry that has developed, namely seven percent VAT on moorings in marinas and exemption from VAT for food and beverage services for the needs of yachts," Damjanović said. .

The Ministry indicated that until recently, the possibility provided by the Rulebook on special measures of customs supervision and customs procedure for goods used for the supply of means of transport in international traffic, by which recreational vessels poured cheaper fuel, was often abused.

Abuses and warnings

"Cases of fuel supply and short-term leaving of the customs area have been noticed", they pointed out from this department, adding that the legal basis for changes to the regulations is in Article 49 of the Customs Law.

The Ministry emphasized that the European Commission assessed that the supply of watercraft used for private purposes (recreation, leisure) in the manner prescribed by Article 6 of this rulebook is contrary to the relevant regulations and practice of EU member states.

"EC reports have repeatedly emphasized the need to harmonize customs regulations in this area with the EU acquis, which allows fuel to be supplied without payment of VAT and customs duties only to vessels that transport passengers for a fee, i.e., that carry out commercial and industrial activities activities. "The laws on VAT and excise duties have been harmonized with the relevant EU regulations in the part of mineral oils for the needs of vessels", they said in this government department.

The Ministry cited the risks of canceling this privilege as the non-arrival of yachts whose only motive for arriving is to supply fuel, loss of income from moorings in ports paid for by yachts, lower profits for national oil companies and lower tax revenue from income tax.

"However, this solution will significantly affect the improvement of Montenegro's negotiating position in chapter 18 - taxation, and chapter 29 - customs union, it will also affect the reduction of the gray economy on the market of oil derivatives", stated the Ministry of Finance.

From this department, they pointed out that among the countries in the region, Montenegro and Albania offered the possibility of supplying yachts with fuel without duties and that Albania canceled this benefit from January 1 of this year.