MPs have completed the debate on amendments to the Law on Real Estate Tax, which would reduce tax obligations on plots of land used by municipalities for agriculture by up to 90 percent, instead of the current mandatory 70 percent.
They will comment on these changes later.
Amendments to the Law on Real Estate Tax were requested by MPs from Albanian national parties Nikola Camaj, Artan Čobi and Ilir Čapuni, and they stipulate that municipalities may, but do not have to, reduce tax rates on real estate used in agriculture by up to 90 percent of the tax liability, while the current law states that they must reduce the tax liability by 70 percent.
This would mean that instead of a guaranteed reduction of 70, the taxpayer could have a reduction of 20, 10 or zero percent. They have also submitted an amendment, which would reduce the reduction by 20 to 90 percent. The MPs of the European Movement have now submitted amendments demanding that the competent authority of the municipal unit prescribe more detailed criteria for determining the real estate tax.
Deputy Speaker of the Assembly Nikola Camaj (Albanian Forum) explained that the amendments were submitted for the purpose of fiscal improvement of municipalities, as the 70 percent tax liability was mandatory for agriculture. This solution, he says, reduced municipal revenues and there was no equal tax treatment because some unregistered people did not receive relief.
He pointed out that the amendments allow municipalities to independently decide on the amount of tax relief, which will allow them to align fiscal policy with development goals and enable fiscal decentralization. He added that the new law will also apply to procedures that have not yet been legally finalized.
"The implementation of this law does not require additional funds from the state budget, while creating the preconditions for more stable local government budgets and a greater degree of fiscal responsibility. The law is in line with the European Charter of Local Self-Government and the recommendations of the Council of Europe relating to the financial independence of local authorities," he stated, adding that this way decentralization occurs, discrimination is eliminated, and agriculture is encouraged.
No Government opinion
Democratic Party of Socialists (DPS) MP Mihailo Anđušić asked that he did not know how the Government would react to these changes, and that he thought that the executive branch could have already made certain changes by now, but also that he believed that there would be no major changes for municipalities.
"If we are told that we have global inflation, what is the need to increase real estate tax solutions? What is the need to increase water bills? The government's lower revenue from citizens is a deficit on the revenue side and the state has serious problems functioning in the coming period if it reduces any levy. If VAT is reduced on basic foodstuffs, fruits and vegetables, the state could enable people to pay lower prices tomorrow, but it is clear that it will not because it cannot and because it would go bankrupt," and that real estate tax levies are already 50 percent higher.
New Serbian Democracy MP Velimir Đoković stated that the 50 percent increase in the price of water in Danilovgrad, although it sounds significant, amounts to only 30 cents more per cubic meter. He stated that this is not the company's arbitrariness, but a proposal by the regulator.
Anđušić added that difficult decisions on price increases for services in state-owned companies are not made because party managers in them know that it will cost them in the next elections. He stated that this is bad for citizens in the long run.
Social Democrat MP Boris Mugoša stated that the public call for members of the Regulatory Agency for Energy and Regulated Utilities was not carried out properly, and that the Delegation of Montenegro confirmed this and requested that the public call be carried out again and brought into line with the EU acquis.
"Colleagues from Albanian parties proposed the law in June last year, 11 months have passed to date, the Government has not given an opinion on the proposal of colleagues since June. From December to date, the Government has not given an opinion on the amendments," he said, adding that the Government's opinion on the amendments of the Europe Now Movement on the same topic arrived within 15 days.
He claims that the opinion of the municipalities, or rather the Association of Municipalities, must be obtained, because the changes affect their revenues.
Anđušić stated that the session was scheduled for last night, while its start was canceled several times, and that there was great disorganization in the parliament. He emphasized that there was also no session of the Committee for International Relations and Emigrants, due to the lack of a quorum, which is hindering the work of diplomats.
Europe Now Movement (PES) MP Boris Pejović stated that he wants MPs to be fair and discuss the agenda items, not inflation and other topics. His colleague Miloš Pižurica said that DPS leaders had previously confirmed that they had not been sufficiently committed to the standard of living of Montenegrin citizens.
Foresters added to wood processors
The session also discussed the Law on Compensation for Former Wood Processors, proposed by the Democrats, with the aim of correcting the injustice towards workers who lost their jobs in this sector during the transition period. The session was subsequently adjourned.
The law provides for the acquisition of the right to a one-time compensation of 12.000 euros to resolve the social and financial problems of former employees who, due to bankruptcy, were left without the possibility of further employment, exercising the right to full pensions, and without money from social programs.
Democratic MP Nikola Rovčanin explained that the amendment requested that the law be extended to the forestry industry. He stated that these compensations began after those for metal and mining workers, so these measures should have been proposed for other sectors such as the service, textile, food, transportation, electronics industries...
He stated that the shares they had in the wood processors also failed and could not be collected, and that from June 1, former workers and their heirs will have three months to apply for compensation from the Ministry of Agriculture, Forestry and Water Management in the amount of 12.000 euros, which would be paid from January 1 of the following year.
He pointed out that these are problems from 20 years ago, so they left a deadline of three months for the workers to collect documentation.
"This is a good law that partially corrects the injustice towards employees. I expect the support of all MPs and I hope that this parliament will make former employees who are victims of transition happy on Labor Day. The amounts will be added up and it will be known how much funding is needed for 2026. A compromise solution has been found," said Rovčanin.
PES MP Dane Marković stated that the amendment requested that those who worked on logging be included.
Democratic People's Party (DNP) MP Vladislav Bojović emphasized that conditions should be created for the development of wood processing, so that similar things do not happen in the future, and appealed for the focus to be on the untapped economic potential of the north.
URE MP Miloš Konatar added that he has submitted an amendment that would include former textile industry workers. Rovčanin stated that they support all compensations, but that wood processors have been waiting for this measure for 20 years, and that he believes that the work should be done in stages so that payments are guaranteed.
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