The MPs finished the discussion in the Assembly on amendments to the Labor Law, on contributions, tax measures and part of other regulations, which are necessary for the implementation of the Fiscal Strategy and at the same time the "Europe Now 2" program.
After an almost eight-hour hearing, the discussion on amendments to the Law on Contributions for Mandatory Social Insurance, on Labor, on the Profit Tax of Legal Entities, as well as on the Proposal for the Law on Write-Off of Interest on Due Tax Obligations, was completed.
Deputies will subsequently vote on these regulations in the parliamentary plenum.
In addition, on Friday, September 6, the debate will continue on amendments to the Law on Personal Income Tax, Value Added Tax, excise taxes, but also on the budget rebalancing for 2024.
Minister of Finance Novica Vuković said about the amendments to the Law on Contributions for Mandatory Social Insurance that the measure is proposed based on reducing the burden on labor costs and that the change in net salary will be felt by everyone. He repeated that the claims that pensions will be reduced in the future, due to the proposed measures, are not true.
"With the adoption of this law, the tax burden on labor will be reduced through the reduction of contributions for pension and disability insurance (PIO), at the expense of the employee and employer from a total of 20,5 percent to 10 percent. The contribution for PIO at the expense of the employee from 15 to 10 percent and to the employer's burden, from 5,5 to 0 percent," he explained and added that the sector that is the biggest cost for the employer is affected.
The Minister of Labour, Employment and Social Dialogue, Naida Nišić, clarified that the opposition's claims that pensions will be reduced due to a higher minimum are absurd. Amendments to the Labor Law foresee an increase in the minimum wage for high school students to 600 and 800 euros for university students.
Promises have not been fulfilled
Member of the Civil Movement URA Miloš Konatar stated that PES did not fulfill the promise on which they won the elections, that is, that the minimum wage will be 700 euros. He stated that he supports salary increases, but not at the cost of borrowing and jeopardizing public finances. He added that there is no increase in all salaries by 25 percent, but that there are higher taxes.
In response to Konatar's criticism that he had already requested changes to the law to increase pensions for proportionate pensioners, Nišić said that the 43rd Government had a chance to do that. She pointed out that it will be done by the end of the year.
The Social Democrats (SD) pointed out that they promised a minimum of 700 euros, a 25 percent higher net salary for everyone, seven-hour working hours until October of this year, and that the votes were obtained but that the promise was not fulfilled.
The deputy of the Democratic Party of Socialists (DPS) Nikola Milović stated that the fiscal strategy was proposed hastily, and that wage growth should go through economic growth and not legal action. He also claims that these measures will accelerate indebtedness and the growth of public debt, and he also asked whether the European Commission had been asked about these measures.
"Today, Montenegro is living the biggest economic experiment, which will have a tectonic impact on state finances. No one here in the hall is against salary increases, but the economic model based on the administrative side is not what brings new value. You abolished the real economy, increased are wages in the state sector and you have a negative impact on the economy. You have a 320 percent increase in the minimum wage in two years," said Milović and added that the Central Bank also pointed out that there could be growth in the gray economy.
Mihailo Anđušić from the same club emphasized that the citizens consider the "Europe Now 2" program to be a fraud, especially because of the high prices in stores, the price of water, taxes...
MP of the Europe Now Movement (PES) Vasilije Čarapić explained that the country recovered after the coronavirus pandemic and that it was then that better financial management was introduced. Earlier, he said, investors were attracted by low wages and cheap land, which particularly damaged Montenegro during the pandemic.
His colleague, Dražen Petrić, pointed out that the salary growth was higher than inflation, which means that in recent years, earnings have increased by around 20 percent in real terms. PES MP Jelena Nedović stated that they are fulfilling their promises.
The Democrats stated that the wage increase is significant, especially when compared to the fact that these steps were taken slowly before. MP Boris Bogdanović added that high prices must be accompanied by rising wages.
The Bosniak Party stated that they support these increases, and support also came from the New Serbian Democracy (NSD).
Minister Vuković explained in the first part of the session that with the amendments to the Law on Corporate Profit Tax, it is planned to exempt companies that invest money from profits in agriculture. The total amount of these tax exemptions for a period of three years cannot exceed 300.000 euros. He pointed out that the goal is to strengthen the competitiveness of agriculture, increase the number of producers, projects...
By adopting the Proposal of the Law on write-off of interest on overdue tax liabilities, the goal is to write off accrued interest to debtors who pay the basic tax debt in full. Earlier today, MPs also voted to amend the General Law on Education.
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They claim that price increases are coming
DPS MP Nikola Rakočević pointed out that these measures and other taxes are being introduced due to salary increases and other "Europe Now 2" measures, which is why everything will be more expensive at the same time.
"We warn you that this is not a solution for achieving results and a way to increase the state standard. The only thing we can support is the write-off of interest if the principal of the debt is paid. Why didn't you apply that model to 80 percent of these measures? This is a way to endanger life standards", he stated.
PES could hear that these two regulations have positive effects on citizens, that they have fulfilled their promises, that the measures affect financial stability and the liquidity of the economy.
MP Mirsad Nurković added that these measures serve to collect what can be collected, and that changes related to agriculture are also significant.
The Democrats said that these are sustainable measures that will fill the state coffers. Support also came from the Socialist People's Party (SNP) because, as they said, they believe that the tax debt of 600 million euros will be reduced and finances will be stabilized.
Poles, Čamgoz and racketeering
MP URA Dritan Abazović stated that the previous government contracted the purchase of patrol boats from France at a price of 120 million euros, 94 million for the boats and the rest of the money for VAT and interest, and that now the government is contracting the purchase of 139 million euros.
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"I ask who will be included in those 19 million? Give the name of the Polish company that is involved in the business, not the French one, but the Polish company that is an intermediary in the business. Did they agree on this in Saint Tropez? You have to sign the contract directly with France , not with a private company. Here is the confirmation of France, where is the interstate agreement? 19 million is not five euros, you support organized crime and corruption and you have come to fool the citizens. ", said Abazović and added that the beheading of every institution speaks volumes.
He pointed out that the increased ministries and the number of officials cost the citizens a million euros per month, and that the 44th Government has the highest expenses for official trips and non-purpose expenses. He also referred to the decision to extradite Turkish citizen Binali Çamgoz to that country.
"Where were these people from the Government, bragging that they transported him to Turkey? Where were they when the previous Minister of Justice issued a decision to protect him? Here we and our colleagues could hear, the others were silent as if watered. Where were to announce that it was illegal then? I think that what they did is illegal and that they should return the money to the Turk, he said.
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Abazović added that the proposed measures stimulate non-payment of taxes, and he asked who paid for the 140 billboards across Montenegro, and whether it was paid from the Government's money or from the money of the Europe Now Movement.
"These mysteries are getting boring"
The Vice President of the Assembly and Secretary General of PES Boris Pejović said that Abazović does not know what is happening in his ranks, and that during his government tunnels were dug and controversial citizenships were granted.
"Now it seems that you don't even know who supports your list, so there was a scandal that councilor in the Assembly Stevan Kandić, who is on the council list of PES and the Democrats, ended up on the list of support of Jakov Milatović and GP URA. It is a scandal, if the Municipal Election the commission finds that you forged a signature... This will have an institutional epilogue. The authorities will determine it, these mysteries have become very boring. You are suspected of misusing about 350 thousand euros of state money for lobbying , we prosecuted this case as well. You say we support crime and fraud, prove it, you are making the same arguments," Pejović said and repeated that the government was in debt due to overdue obligations.
Pejović also asked Abazović whether he would withdraw his support for the list, if it was determined that his list misused the signature of support.
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Abazović stated that he did not know Kandić, and that he should determine whether someone had signed on his behalf.
"You are political cowards, you have not prosecuted anything. You have not filed a criminal complaint, do you know why? If it is rejected, I have the right to report you for false reporting. You, as representatives of the majority, do not sleep because one of your members needs to be prosecuted very quickly, that is why you you shut up," said Abazović.
Pejović stated that this also happened in Abazović's party, and that if the situation surrounding Kandić is confirmed, it will show that Abazović is superficial.
PES MP Drako Dragović stated that according to the documentation, the Government can buy the ships from France at a maximum price of 120 million, with another 700.000 euros for support and staff costs.
Abazović asked if a similar document on the purchase of equipment had reached the Parliament for ratification, and added that 19 million euros would be interest. He repeated that the previous Government estimated the purchase at 94 million euros.
"Why did the Government come to the Assembly with this? They want to buy patrol boats, come to the conclusion that they have to buy military equipment. What does the Assembly want? That people can't go in procession tomorrow. I said the same thing about the highway in 2015. Don't discuss it because I negotiated," he said.
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