The company "13. jul - Plantaže" expressed "deep concern" over the proposed amendments to the Law on Real Estate Tax, which are currently being decided in the Parliament.
They believe that the adoption of the proposed amendments to that law would have serious and long-term negative consequences for the company's operations and the position of all agricultural producers in Montenegro.
They say that, at a time when domestic agriculture needs support and a stable regulatory framework, the proposed changes go in the opposite direction. They claim that adopting the proposed changes risks the future of "Plantaže" and the overall sustainability of Montenegrin agriculture.
"First of all, the proposed amendments to this Law would lead to discrimination based on municipal affiliation, within which local self-government units are allowed to determine the percentage of tax liability reduction on real estate used for agricultural production, ranging from 20 to 90%. The proposed amendment to the Law leads to uneven practice and discrimination among producers operating in different municipalities. Thus, farmers from one municipality could have almost no reduction, while others would have significant relief, which is contrary to the basic principles of equality guaranteed by the Constitution," the Board of Directors of "Plantaž" announced.
They say that practical examples clearly confirm this:
"While the Capital City of Podgorica made decisions on a 20% reduction, the Municipality of Pljevlja envisaged 90%, and other municipalities such as Bijelo Polje did not envisage any reduction. This is precisely why the current solution, which prescribes a mandatory 70% reduction for all producers, is the only fair and systemically correct solution, and prevents uneven practice and potential fiscal discrimination between producers."
They said that, if the proposed amendments to the law are adopted, "Plantaže" and numerous other producers will be additionally burdened economically, "which at this moment, when we are also facing the introduction of excise duties on still wines, would represent a serious blow to the sustainability of business and competitiveness on the domestic and foreign markets."
They stated that agriculture, as a strategic branch of the Montenegrin economy, deserves a stable, predictable and uniform tax framework.
"If the Proposer's intention was to introduce additional benefits for agricultural producers, who under the current Law are entitled to a 70% tax rate reduction, they should have proposed a tax rate reduction of 70% to 90%, and not, as is now proposed, from 20% to 90%," the Board of Directors of the state-owned company believes.
They believe that the proposed amendments aim to further jeopardize the position of agricultural producers, and that they seek to reduce their right to benefits when determining real estate taxes..
"We find it particularly problematic and concerning that Article 2 of the proposed amendment introduces a norm that could be interpreted as having reverse fact – which is in direct contradiction with Article 147 of the Constitution of Montenegro, which prohibits the retroactive application of laws, except when required by public interest."
They also said that provisions relating to the possibility of applying the law and to proceedings that have not been legally concluded raise the issue of legal certainty, since such solutions are "contrary to basic constitutional principles and established judicial practice."
They appealed to protect the principle of equality of all agricultural producers in the country, and to reject the proposed amendments that "create legal uncertainty, enable selective tax burdens, and jeopardize the business of Montenegro's most important brand."
They also demand respect for constitutional principles prohibiting discrimination and retroactive application of laws, as well as protection of domestic agriculture and the economy.
"We believe that legal solutions should be systemic, fair and sustainable in the long term, with no room for uneven application and interpretation that could lead to additional problems and instability in the sector," the Plantaž board said.
DON'T MISS IT
They called on MPs not to support the proposed amendments to the law, which "are not in the interest of the development of Montenegrin agriculture, nor the preservation of national production and brands."
"Instead, we call for respect for existing laws and the consistent application of provisions that protect the rights of agricultural producers and guarantee the stability of the sector that is the foundation of the Montenegrin economy."
They say that preserving domestic agriculture and national brands must be everyone's priority.
"The Plantaže company will, as before, protect its legal rights before the competent institutions, but we believe that this problem must be resolved systematically, with the support of those responsible for enacting laws that should be fair and sustainable," they emphasized.
They say they advocate for dialogue and harmonization of solutions that will be in the interest of all producers in Montenegro, while respecting legal practice, constitutional norms, and the principle of balance between fiscal needs and support for agricultural development.
"Therefore, once again, we appeal to all members of the Parliament of Montenegro to reject the proposed amendments to the Law and stand up for the protection of domestic agriculture, equal treatment of producers and preservation of the business of the most important Montenegrin brand," the statement reads.
Bonus video:
