Entrepreneurs, trade unions and economists have sent to the Government proposal for measures to mitigate consequences of the coronavirus pandemic. They requested subsidies on the salaries, 50% cut on VAT, delay of settlement of bills, ban on cutting the electricity and reduction in electricity bills…
President of the Entrepreneurs Association, Ms Edita Dautović, said that micro, small and medium enterprises and crafting shops were the most endangered category of companies.
“On the grounds of consultations we had with the Administrative Board of the Association, membership and the survey, we propose the most urgent measures to be put in place in relation to financial support for companies depending on their size, number of employees and the manner of operation, as well as subsidies on salaries during the epidemic”, Ms Dautović wrote in her letter addressed to Mr Duško Marković.
The Association suggested 50% cut of VAT and the rest of the debt to be repaid in installments for the next 12 months. Representatives asked for the delay in payment of taxes and ban on the compulsory settlement of claims during the epidemic.
“Majority of companies will be forced to shut down”, Ms Dautović said.
Out of 5,35 thousand commerce facilities in Podgorica, only 10% are working. Out of 1,3 thousand of crafting facilities, none is working. Hospitality facilities aren’t working.
KOD organization also delivered proposal of measures for the stability in the current situation.
“Starting from the fact that country is majority owner of Electric Power Company, it is necessary to call competent state institutions and bodies and ask them to find legal basis for introduction of cheap tariffs for the power spent during the day”, representatives of KOD said.
They think local administrations, as owners of municipal companies for water supply, should enable their citizens 50% reduction in the price of spent water.
“It is necessary to call telecommunication and cable operators – Telekom, Telenor, M:Tel, Telemach – and urge them to demonstrate socially responsible business and ethical relation with their users by lowering price of their services or allowing them to pay in installments. Supplying population with basic foods requires exemption from VAT for basic supplies and hygiene products and purchasing them in limited volumes, with the aim of preventing shortages”, KOD representatives said.
Union of Free Trade Unions sent a letter of notice to Mr Marković with the proposal for measures. They asked for non-recurring financial assistance for the users of disability, proportionate and family pensions.
“Bills for communal services to be delayed for at least three months, and cutting off electric, water or telecommunication grid to be banned for at least three months, or for as long as there’s danger from virus spread”.
The Government shall oblige employers to extend fixed-term contracts which are due to expire in the time of epidemic for at least three months.
Union of Free Trade Unions suggests that Government and NCB find model and engage social partners in the process of planning and implementation of those measures.
“Set plans for earmarking funds from the budget for social benefits in forthcoming period; introduce strict penalty measures for those who tend to use this emergency situation and make profit”.
Kasalica: Fresh money to be pumped in economic flows
Economic analyst, Ms Mila Kasalica, said that fresh money should be pumped in economic flows.
“Directly in business entities. As long as there are no official dismissals, we are still on the healthy side of the recovery. If micro and small enterprises collapse, that will be great damage for our economic system. If at the end of this year, our GDP doesn’t plunge, we will be in a sustainable system situation and able to gradually bring economy back to its force. Additionally the country shall continue to provide support for the most vulnerable groups”, Ms Kasalica said.
Fidelity consulting said that the Government had enough money for Montenegrin economy.
