Vuković: RARP is one of the most important projects in Montenegro, its goal is to improve the operational functions of the Tax Administration

The tax administration reform project is one of the most important that is implemented in Montenegro, and its development goal is to improve the effectiveness of the operational functions of the Tax Administration (PUCG) and reduce the costs of taxpayers of legal entities when complying with tax obligations, said Finance Minister Novica Vuković at the meeting of the Administrative of the "Tax Administration Reform - RARP" project committee.

"The long-term vision of Montenegro is a tax administration with modernized risk-based business processes that contribute to the efficient collection of taxes and contributions for social insurance from all sources of economic activity," said Vuković.

Vuković, as stated in the announcement of the Ministry of Finance, pointed out that the increase in the settlement of tax obligations will generate a greater inflow of income from which basic services will be provided for citizens, and the improvement of the capacity of the tax administration will contribute to the achievement of the country's goal of EU accession and economic integration with EU member states."

Acting Director of the Tax Administration Sava Laketic expressed the expectation that this important and comprehensive project, "among other things, will contribute to a wider and more detailed base of taxpayers, to the reduction of the gray economy, that is, to the introduction of the informal economy into formal flows."

"The members of the Board of Directors were addressed by video link Christopher Sheldon, the head of the World Bank office for Montenegro and Bosnia and Herzegovina, who praised the acceleration of dynamics in project activities, and the meeting emphasized the exceptional coordination at the level of the Ministry of Finance and the Tax Administration. Project managers, Marija Šofran i Sanja Radević presented the projects "Integrated system for revenue management - IRMS" and "Platform for data analytics" - DWH/BI", the Ministry's statement added.

They emphasized that the RARP, whose value is 18,8 million euros, is "financed from a loan from the World Bank, the original duration of the project was planned from 2018 to March 2023, however, due to a large delay in the implementation of the planned activities in the previous period , its duration was extended until September 2025, when it is expected to be successfully completed, as stated at today's meeting.

"The direct beneficiaries of the project are the Government of Montenegro and its institutions of public finance, while the ultimate beneficiaries are Montenegrin taxpayers and citizens," they concluded.