As printed media battles to remain viable, the Montenegrin government is considering a substantial VAT increase from seven to 15 percent, a move that could deliver a severe blow to the industry. This proposed change, part of the Fiscal Strategy for 2024-2027, threatens to push print media to the brink of extinction. Has the government fully assessed the potential trade-offs between the anticipated fiscal benefits and the damage this could inflict?
For nearly a decade, print media in Montenegro has been dedicated to upholding public interest and nurturing the country’s cultural heritage. The planned VAT increase, however, risks undermining these efforts by adding significant financial strain. The government’s focus on immediate cash flow overlooks the long-term impact on an industry already struggling to survive, potentially resulting in over 300 job losses.
While reforms are essential, it is crucial to consider expanding the scope of taxation to address the grey economy, rather than imposing further burdens on the already fragile print media sector. There is a pressing need to target unregulated revenue streams that evade legal oversight, thereby bolstering state revenue without endangering vital cultural and public services.
