Montenegro’s Minister of Finance, Novica Vuković, has outlined the country’s ambitious long-term vision for a modernized tax administration. With a focus on risk-based processes, the goal is to enhance tax and social security contribution collection efficiency across all sectors of the economy.
Vuković emphasized the significance of the ongoing tax administration reform project, considering it as one of Montenegro’s key initiatives. The project aims to streamline operational functions within the Tax Administration (TA) while alleviating the tax burden for legal entities.
Addressing the Steering Committee meeting of the Tax Administration Reform Project (TARP), Vuković stressed that improved tax compliance will lead to increased revenue streams, ultimately benefiting citizens with essential services. Additionally, strengthening the tax administration’s capabilities aligns with Montenegro’s aspirations for EU accession and economic integration.
Acting Director of the TA, Sava Laketić, anticipates that the comprehensive reform efforts will broaden the taxpayer database and curb informal economic activities, subsequently formalizing them into legitimate channels.
During the meeting, Christopher Sheldon, the World Bank’s Country Manager for Montenegro and Bosnia and Herzegovina, lauded the project’s accelerated activities. He commended the exceptional coordination within the Ministry of Finance and the Tax Administration.
Project managers Marija Šofran and Sanja Radević provided insights into the Integrated Revenue Management System (IRMS) and the Data Analytics Platform (DWH/BI) projects.
Originally slated to conclude in March of the previous year, the TARP’s timeline has been extended until September of the following year due to implementation delays. Financed by a World Bank loan totaling 18.8 million EUR, the project aims for successful completion, with direct beneficiaries including the government and public finance institutions, while taxpayers and citizens stand to benefit indirectly.
