The accumulated problems of businessmen from the hairdressing and cosmetics industry have grown to the extent that they threaten the sustainability of their business and require an urgent response and support from the authorities, it was assessed at a meeting held in the Union of Employers (UPCG).
In UPCG, a meeting was held between the deputy president of the Committee for hairdressing and beautician services at UPCG, Violeta Vukomanović, with the executive director of the Chamber of Crafts, Sanja Đurović, and the secretary of the Association of Hairdressers and Hairdressing Clubs (SFFKCG), Viktor Vukadinović.
In the joint announcement of the UPCG Committee for hairdressing and beautician services, the Chamber of Crafts and SFFK, it is stated that the participants of the meeting agreed that the priority of their further joint work will be the fight against the gray economy and illegal work.
The priority, as announced, will be insisting that through the continuation of tax reforms, a reduction in the rate of value added tax (VAT) for that industry will be provided.
It is stated that the members of the board cited a number of examples from practice, which say that the work of those who operate legally, in accordance with the law, is exposed to frequent controls by the competent inspection services, in contrast to participants in the gray zone - hairdressers and beauticians who are not registered, but completely they carry out economic activities unhindered and generate income free of any duties.
The Board of the UPCG, the Chamber of Crafts and the SFFK said that, in addition to being important for the state in terms of tax collection, members of the informal sector also represent unfair competition to all registered employers in that industry.
They said that, bearing this in mind, a conclusion was reached to send an initiative for a meeting with representatives of competent ministries, inspections and local self-government, in order to further look at the problems and find adequate, concrete solutions for them related to the suppression of illegal work.
"Also, the need for the as soon as possible adoption of amendments to the Law on Crafts, which would, among other things, prescribe the method of obtaining the title of master for hairdressers or beauticians," the announcement says.
It is stated that this would bring order to that area and deny individuals the opportunity to perform jobs for which they are not adequately trained and qualified after obtaining formal education.
At the meeting, it was assessed that the VAT rate is too high and as such burdens legal business, while it further disincentivizes those working in the gray zone to register and move into formal channels.
As it was announced, good practice in certain countries of the European Union and the region can serve as an example, where the amount of VAT for craft activities is on average from seven percent to nine percent.
"The reduction of the VAT rate creates a multiple effect that results in a reduction of illegal work, an increase in the number of registered entities, an expansion of the tax scope and an increase in budget revenues on that basis," the announcement says.
At the meeting, it was assessed that it is in the interest of the economy, society and the state that the gray economy can be eliminated to the extent possible, as well as that it is necessary to support businessmen who operate in accordance with the current regulations and laws of Montenegro, contribute to the community through business and provide small budget revenues.
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