(Podgorica, 10 June 2013) – The government’s plan to impose a new “KAP tax” on the citizens of Montenegro is a step closer to becoming a reality thanks to the Parliamentary Committee for the Economy, Finances and the Budget, which is chaired by SNP MP Aleksandar Damjanović.
In the preceding weeks, MANS has presented to the public a number of arguments against imposing new regressive taxes on citizens, pointing to a number of alternative solutions. It has also drawn attention to the fact that the government’s fiscal policy does not seem to be equally applied to all. Instead, it appears that in Montenegro there is a class of privileged companies and individuals who are close to the government and the Prime Minister.
These concerns weren’t sufficient to sway “oppositional” MP and Committee President Damjanović into accepting our request to participate in the Committee’s meeting in order to inform it of the arguments against introducing the “KAP tax” (even though the request was made within the legally mandated deadline and followed all the necessary procedures).
Even though we’re dealing with an “oppositional” figure, we expected that he would rise above the personal animosity that he feels towards MANS for openly criticizing his ties with Prime Minister Milo Đukanović’s family (especially with his brother Aco Đukanović and the First Bank).
We felt that the “First MP of Montenegro” would be familiar with the importance of the agenda item dealing with the VAT increase, and that as a member of the opposition he’d be interested in raising questions about such a hike in order to pay-off the debts of a Russian tycoon.
Unfortunately, this isn’t the first time that Damjanović – who has repeatedly shown his loyalty to the Đukanović family – has asked that the government be trusted to resolve the crisis in the KAP.
Furthermore, in addition to the SDP ministers in the Government, the decision to support the “KAP tax” was supported by its MPs, in spite of their rhetorical commitment to the public interest and social rights when it comes to any eventual solution for the KAP. Until recently members of the party where firmly opposed to any plan that would essentially further subsidize KAP’s Russian owners.
“We’ll take from the rich to give to the poor,” was until recently a sound motto used by some SDP MPs to describe their party’s policy towards KAP. Following the vote to introduce a “KAP tax,” it became clear the the SDP prioritizes flattering the ruling DPS rather than more pertinent concerns. Thus the SDP is willing to sacrifice the principle of the public interest in order to continue its power sharing arrangement with the ruling party.
We find a similar situation when it comes to the representatives of Bosniak parties in the Committee, who also voted in favour of the “KAP tax.” We urge these parties to mobilize their voters and workers, especially those in Rozaje’s collapsing industries, as well as in other cities across northern Montenegro, and to explain to them how increasing the VAT will help to reopen their factories, help improve the conditions facing the working class and develop the north.
These are answers that are being demanded not only by former workers in Rozaje, but workers in other factories across the country that are asking the Parliament and the Government to explain why Russian tycoons in the KAP are more important than them and their children.
It is a question that should be answered by all those in the Government and Parliament that support the introduction of the “KAP tax.” MANS absolutely supports the efforts of workers to get to the bottom of the current situation and who are demanding that their interests be finally placed above those of Russian tycoon Oleg Deripaska.
