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Successful tax collection means more money in municipalities

Odbor za ekonomiju (Foto: Skupština Crne Gore)

Objective of the amendments to the Law on tax Administration is to make delivery of tax acts easier for local self-governments. Additionally, we expect that effects of tax collection on immovable properties will be at much higher level, said Ms Jovanka Laličić, member of DPS.

Meeting of the Committee on Economy, Finances and Budget was held yesterday. Amendments to the Law on tax Administration were presented and it was said that they would have a positive impact  on the budget of local self-governments and creation of room for capital and other social investments.

Ms Laličić pointed out that amendments gave priority to personal delivery to taxpayer, his/her proxy or lawyer.

“With two new articles, delivery of tax act is accurately defined. That’s the practice local self-governments have been pointing out on. The application of the Law on Administrative Procedure has been a very complicated process and it contributed to abuses and other lapses”, said Ms Laličić.

The proposal was endorsed and referred to the parliamentary procedure.

DPS MP, Mr Filip Vuković, thinks that the amendment will be helpful, but only in part.

“When it comes to finances of local self-governments, every amendment won’t produce significant results if there are no strategic changes related to local self-governments financing”, said Mr Vuković.

His counterpart, Mr Nikola Rakočević, said that the objective was to provide better collection percentage of taxes on immovable property in local self-governments.

The law strictly stipulates when the tax act is considered delivered to taxpayer, that is, when the responsibility of taxpayer comes into effect.

“This way, we’ll toughen up on the collection of tax on immovable property, as it’s one the most dominant revenues of local self-governments”, pointed out Mr Rakočević.

Member of SD, Mr Boris Mugoša, says that amendments will have an impact on creation of more stable financial resources in local self-governments. He pointed out that tax on immovable property was one of the most important revenues of local self-government units.

“In that context, I agree with the proposal. It’s a signal for local self-government units to assume specific responsibilities”, said Mr Mugoša.

President of the Committee and DPS member, Mr Predrag sekulić, said that surplus in number of employees in local self-government was a problem that hasn’t been addressed adequately.

“I believe that this law and many other amendments we are going to put forward will help local self-governments to improve tax collection”, said Mr Sekulić.

 

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