(Podgorica, 29 May 2013) – We condemn in the sharpest terms the intention of Montenegro’s government to unilaterally, without broad consultations and any analysis, increase the VAT rate from 17 to 19%. The tax increase imposes new burdens on the poorest and most marginalized classes of Montenegro’s population.
In less than a year, the Government of Montenegro introduced a series of new laws that aim to fill the budget, while curtailing outlays for social assistance, education and other services that are used by citizens.
First a tax on electricity meters and mobile phones was introduced (aka. the “euro for euro” tax), after this a so-called ‘crisis tax’ was imposed on earnings, which further reduced net salaries, and more recently a shameful new Law on Social and Child Security was adopted that considerably curtailed the rights of the poorest citizens.
Yesterday’s adoption of this last law, effectively limiting the rights of families and users of child and famil8y benefits has only confirmed that the government is continuing to resolve its budgetary problems on the backs of citizens and unfortunately on the backs of the most vulnerable.
The adoption of a new, higher VAT, would push an additional number of citizens closer to the poverty line, while the general price increases that are expected would push the poorest into an existential crisis.
Even though we understand that in a crisis it is important to save, it is absolutely unacceptable that only citizens and the most vulnerable categories be forced to bear the brunt of the crisis and the government’s bad decisions. This is particularly true when we consider that the current savings measures only target social assistance, while other budgetary outlays and benefits that are enjoyed by high-ranking state employees remain insufficiently reduced.
We’re particularly worried that as in the “euro for euro” tax, the newly increased VAT is being introduced to correct the consequences of bad privatization decisions and the payment of others debts and credits, instead of this money being spent for the advancement of living standards. A serious state should be able to ensure the payment of existing taxes, instead of filling the budget by increasing taxes in an indiscriminate way.
For this reason, we’re once again calling on the Government of Montenegro to withdraw the proposed Law on the VAT, which would increase that tax. Instead we’re calling for a public debate on these questions, in order to find out other methods to correct the current deficit that aren’t simply based on displacing the burden of restructuring on the most vulnerable citizens in Montenegro.
Signed by:
Women’s Group “Stela” – Cetinje
Center for Women’s Rights
Montenegro’s LGBTIQ Association “Queer Montenegro”
Montenegro’s Committee of Lawyers for Human Rights
NGO Prima
Green Home
League of Women Voters of Montenegro
Action for Human Rights
Ozone
Expeditio
Women’s Safe House
Women’s Safe House Nora
NVO Anima, Kotor
NGO Anima – Kotor
Podgorica Youth Association
MANS
