In the municipality of Gusinje, during the past year, a total of 25.452 euros in value added tax (VAT) was collected, and in Petnjica 27.988 euros. These are the contributions of these municipalities to the state budget in the most significant tax. At the same time, these municipalities will receive from the state Equalization Fund for this year - Gusinje 828 thousand euros and Petnjica 992 thousand euros.
These data indicate that in these two municipalities economic and commercial activity has almost completely disappeared or is carried out in a gray zone. This VAT amount of 25 and 28 thousand euros should be collected on turnover that would amount to 130 to 150 thousand euros annually.
According to the census, Gusinje has 4,6 thousand inhabitants and Petnjica has 1,6 thousand. The municipality of Šavnik has 186 thousand inhabitants, but according to this data it is an economic giant compared to these two municipalities. Last year, VAT was collected in the amount of 2,2 thousand euros. In Plužine, which has 126 thousand inhabitants, the state earned 953 thousand euros from VAT. Šavnik received XNUMX thousand euros from the Equalization Fund, while Plužine does not receive this type of support.
Andrijevica has almost a thousand fewer inhabitants than Gusinje, but its VAT revenue is 43 times higher.
The Tax Administration's data on VAT collection by municipalities were published in response to a parliamentary question by Albanian Alliance MP Ilir Čapuni, who was interested in how much of this tax was collected by municipalities over the past five years, how much was collected as a fee for the Coastal Zone, how much was allocated from the state budget for capital projects by municipalities, and how much was invested by the public company Morsko Dobro by municipalities.
The Tax Administration's responses to questions from MPs list VAT revenues by municipality, noting that this concerns tax collection in internal (domestic) traffic, because data on VAT collected by taxpayers upon import cannot be divided by municipality.
56 percent of VAT collected in Podgorica
Thus, last year, the total collection of VAT in domestic sales amounted to 479,5 million euros. The largest amount of this tax was collected in the territory of the capital, 271 million or 56 percent of the total amount collected in the entire country. This confirms that in Podgorica, where, according to the census, 28 percent of the total population of Montenegro officially lives (180 out of 633 thousand), more than half of the economic and commercial activities in the country take place.
In the Montenegrin tourism metropolis of Budva, where 35 percent of the total number of tourist overnight stays was achieved in 2024, VAT in the amount of 41,5 million euros was collected last year. This is 8,6 percent of the total VAT collected last year.
According to this data, Nikšić is the third city in terms of economic strength, because last year it collected VAT worth 30,8 million euros, or 6,4 percent of the total amount collected.
In fourth place is Herceg Novi with VAT collection of 25,6 million, which is 5,3 percent of the total amount of this tax in domestic sales. Then comes Tivat with VAT collection of 24,8 million euros or 5,2 percent of the total amount, Kotor with 19 million euros or four percent, and Bar with 16,2 million euros or 3,4 percent of the total VAT collection.
In eighth place in terms of VAT collection is the first city in northern Montenegro, Pljevlja, with VAT collection in the amount of 12,2 million euros, which is 2,5 percent of the total collection. Then comes Ulcinj with a collection of eight million euros or 1,7 percent, Bijelo Polje with 6,6 million or 1,4 percent and Danilovgrad with 5,8 million euros worth of VAT collection, which is 1,2 percent of the total state revenue on this basis.
The royal capital Cetinje is in 12th place in terms of VAT collection with 3,4 million, which is 0,7 percent, followed by Tuzi with 3,3 million or 0,68 percent and Zeta with 2,3 million, which is 0,48 percent of total VAT collection.
Berane and Rožaje each collected VAT of 1,9 million euros last year, which is 0,4 percent of the total collection.
In 17th place in terms of VAT collection is Kolašin with 1,4 million euros, followed by Andrijevica, where one million euros in VAT was collected last year.
In the seven smallest municipalities, 1,9 million
In the other seven municipalities of Mojkovac, Žabljak, Plav, Šavnik, Plužine, Petnjica and Gusinje, a total of 1,9 million euros in VAT was collected, which is 0,4 percent of the total collection of this tax in domestic sales.
In all 13 municipalities of the northern region, VAT was collected in the amount of 27,2 million euros, which is 5,6 percent of the total collection of this tax.
The most significant state revenue is VAT, and it belongs entirely to the state treasury. Municipalities with a level of development below average are entitled to use money from the Equalization Fund, where a portion of the revenues that previously belonged to the state level are allocated.
When municipalities separated and became independent - Petnjica from Berane, Gusinje from Plav, and Tuzi and Zeta from Podgorica - they had to have a study done showing that their finances would be sustainable. However, a quarter to a third of the total income of these municipalities is diverted from the Equalization Fund.
All four new municipalities are among the underdeveloped local governments. Petnjica received 992 thousand from this fund this year, Gusinje 828, Tuzi 2,24 million and Zeta 1,86 million.
Nikšić also receives money from the Equalization Fund: 5,9 million, Bijelo Polje 4,8 million, Bar 3,8 million, Ulcinj 2,82 million, Pljevlja 2,73, Tuzi 2,24, Zeta 1,86 million, Danilovgrad 2,56 million, and in these municipalities, the state earned more revenue from VAT than it gave them through this fund.
Rožaje received 4,1 million from this fund this year, Berane 3,41 million, Plav 1,93 million, Kolašin 1,55 million, Mojkovac 1,2 million, Andrijevica 1,11 million, Žabljak 1,03 million, they received more than the state collected from VAT.
Seaside property charges the most in Ulcinj, without an answer about investments in beaches
In the response to MP Čapuni, which was submitted to him by the Ministry of Finance, it was stated that Morsko dobro collected 9,2 million in user fees last year, of which the most was in the territory of Ulcinj at 2,97 million, followed by 2,82 million euros in Budva. 1,1 million was collected in Tivat, 868 thousand in Bar, 834 thousand in Herceg Novi and 617 thousand in Kotor.
He was not given an answer to part of his question about how much Morsko dobro has invested in the coastal area by municipality.
It was stated that 1,49 million euros were allocated from the state budget in Ulcinj for capital investments last year, most of which related to the preparations or beginnings of the projects of the bridge on the Bojana River, Mother Teresa Boulevard, the reconstruction of the cobblestones in the old town, the rehabilitation of the Kruče bridge and the construction of a kindergarten. The total value of these projects is 21 million and their financing will continue in the coming years. The amount of capital investments planned for this year is 1,46 million.
This means that the state collected eight million euros in VAT from Ulcinj, and Morsko dobro another three million.
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