NewsConcerns rise over proposed excise tax on wine

Concerns rise over proposed excise tax on wine

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The economic team of the Strategy for a European and Civic Montenegro (Nova STEGA) has raised concerns that proposed amendments to the Law on Excise Duties, which would impose taxes on still wines, could hinder the development of viticulture in Montenegro.

These amendments, which President Jakov Milatović initially refused to sign after the first vote, are set to be reconsidered by lawmakers next Thursday. The proposal suggests an excise tax of 25 cents per bottle, mainly affecting Plantaže, while smaller wineries would face a reduced rate of 12.5 cents per bottle. Economist Vladimir Nikaljević, speaking at a recent press conference, urged lawmakers to reject the proposal. He argued that while the tax might offer small benefits, it poses significant harm to the Montenegrin economy by making domestic wines less competitive, especially amidst rising imports and a thriving gray market. This, he warned, could jeopardize small producers. Nikaljević emphasized the need for the government to be cautious, as viticulture is a vital part of the national identity that should be fostered to support tourism and the broader economy.

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He announced that STEGA plans to hold a roundtable on the future of winemakers and aims to gather support from 27 lawmakers who could, under the Constitution, initiate a motion regarding the government’s agricultural policies.

“Plantaže is not just an ordinary company; it serves as a strategic agricultural-export foundation, a cornerstone of Montenegro’s economy. It exemplifies how Montenegro can cultivate a reputable European company with its skilled workforce and unique grape varieties,” Nikaljević stated.

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STEGA member Professor Dr. Vesna Maraš highlighted that in 1963, only a few believed in the potential of the Ćemovsko field and Vranac, yet time has shown that Montenegro has significant promise in grape and wine production. She noted that Plantaže has received over 1,000 awards at prestigious international competitions, demonstrating its success. Despite facing numerous challenges, Plantaže has remained economically viable and focused on development. “They have spearheaded essential scientific and technical efforts, including genetic research that has identified more than 50 potentially indigenous grapevine varieties,” Maraš explained.

She stressed the importance of reassessing Montenegro’s approach to the wine sector to ensure it receives the attention it deserves. “We must pave the way for new victories in wine and business, as there is no place for excise taxes on still wines in this process,” Maraš asserted.

Economic team member Mr. Branko Diki Kažanegra also criticized the lack of support for Montenegrin products, arguing that without valuing local offerings, there can be no successful tourism product. He lamented the neglect of national brands and the promotion of foreign products within Montenegro’s tourism sector.

“How can we have a thriving Montenegrin tourism product without showcasing our own products? It’s absurd. I believe that ministers of trade from neighboring countries benefit most from our successful tourist seasons. If they wanted to assist us, they could, but whether we truly want to is a pressing question. Are we acting out of ignorance or with intent?” Kažanegra questioned.

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