Business barriers are numerous and present in the economic environment of Montenegro. Businessmen are faced with many challenges and problems which might bring into question their business sustainability and competitiveness, said President of the Employers’ Association, Mr Predrag Mitrović. According to him, the main problems are illiquidity, grey economy, inadequate credit support and fiscal and para-fiscal data at local level. He said that cooperation between the Association and local administration authorities existed, although it was very slow.
“Association has been highlighting problems of grey economy for years. We are constantly urging competent authorities to address this issue and put it into focus of all economic measures and policies”, said Mr Mitrović.
Blockage
Mr Mitrović said that business environment was being jeopardized by the current illiquidity problem. On the other side, there’s a great number of enterprises with their accounts blocked. According to the Central Bank, there were 17.000 enterprises with blocked accounts in June, and that’s almost a half of all registered companies.
Employers who fail to notify tax duties, and pay their employees irregularly are unfair competition and as such, cannot be members of the Employers’ Association.
“Economic activities of these subjects hasn’t been registered, which means they evade costs on the basis of taxes, failt to contribute to GDP and they re practically invisible”, said Mr Mitrović.
Inspection
“We invite employers, employees and state authorities to assume full responsibility, report omissions, and apply mechanisms at their disposal. I think it’s high time control was aimed at non-registered subjects”, said Mr Mitrović.
Speaking about the parafiscal taxes, he said that two new laws had been adopted in March. The laws stipulate provisions referring to the improvement of the existing regulatory framework.
Policy creators and decision-makers are expected to clear up the existing misunderstandings regarding the notion of parafiscal tax in order to avoid overlapping.
“We expect the state to collect taxes in the amount enough to satisfy minimum public consumption- The consumption has to be transparent, reasonable and responsible”, pointed out Mr Mitrović.
Cooperation
Ministry of Finance formed in June a working body aimed at collecting opinion on the proposals for decisions rendered by municipalities on public utility and administrative taxes.
Judging by the reactions of businessmen, positive changes in conducting economic policies have improved business environment and boosted business development.
Increase in minimum wages supported by the Employers’ Association
Mr Mitrović said that Employers’ Association had supported the initiative to increase minimum wages.
“Such cooperation between the Government and representatives of Employers’ Association and trade unions as an example of model for reaching consensus”, said Mr Mitrović.
He pointed out that decision makers had to realize that real sector couldn’t be sustainable or developemnt-oriented if the business operation was followed by negative balance and great expenses.
