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European Alliance proposes reducing Montenegro's VAT on accommodation
The European Alliance parliamentary club has announced a proposal to the Parliament of Montenegro to reduce the Value Added Tax (VAT) rate on accommodation services from 15 percent back to 7 percent. The initiative aims to enhance the competitiveness of the Montenegrin tourism sector.
Representatives Branislav Nenezić and Boris Mugoša noted that the 7 percent rate was in effect until January 1, 2025, before being increased to 15 percent. Mugoša stated that Montenegro currently has the third-highest VAT rate for accommodation in Europe, which could drive tourists toward competing destinations.
The proposal is intended to create fairer conditions for registered hoteliers and caterers compared to informal operators. The alliance expects the proposal to enter official procedures in the coming days and hopes for bipartisan support to strengthen the national economy.
Entities
Boris Mugoša · Branislav Nenezić · European Alliance · Montenegro · Parliament of Montenegro