Tax reform rarely captures public imagination. It lacks glamour. It does not produce dramatic visuals or immediate emotional satisfaction. Yet sometimes, the most transformative economic reforms are precisely the ones citizens do not easily see. Montenegro’s Integrated Revenue Management System (IRMS), highlighted in MINA Agency’s reporting as one of the government’s most important financial sector reforms, belongs to that category. It is technical, complex, and administrative — and potentially one of the country’s most consequential economic stabilisation tools.
Montenegro has long struggled with a substantial informal economy. Untaxed transactions, under-declared income, and regulatory evasion reduce fiscal capacity, undermine fair competition, and weaken trust in the state. When tax collection is inconsistent, honest businesses feel punished while informal actors gain unfair advantages. At the same time, the budget becomes vulnerable, depending heavily on seasonal inflows and borrowing rather than disciplined, predictable domestic revenue streams.
IRMS is designed to change this dynamic. By digitalising tax administration, integrating data across revenue agencies, and using technology to track, monitor and manage compliance, the system promises transparency and efficiency that traditional bureaucratic methods cannot provide. Digital revenue systems reduce human discretion, narrow space for corruption, and standardise interactions between state and economy.
But IRMS is not only about collecting more tax. It is also about fairness and predictability. A modern state cannot build investor confidence if its fiscal system is weak. Businesses need assurance that rules apply evenly, that obligations are clear, and that governance is competent. International investors look beyond tax rates; they look at credibility. Domestic businesses do the same. When the state presents itself as organised, digitalised and accountable, it strengthens its position in every subsequent policy negotiation.
There is also a deeper governance dimension. The finance minister’s insistence that IRMS is about “trust” is not rhetorical. Tax systems reflect the social contract. Citizens and companies are more willing to meet obligations when they believe the state manages funds responsibly, services function, and fiscal righteousness is shared. A transparent, data-driven system symbolises institutional maturity. It makes evasion harder and compliance easier — a fundamental shift.
Of course, technological systems alone do not create discipline. They must be accompanied by political will, professional administration, adequate training, and legal frameworks that protect both economic actors and the integrity of the system. They must also be resilient against misuse — digitalisation should prevent abuse, not enable more sophisticated versions of it. Public communication will matter too. Citizens must understand the reform’s purpose, not fear it.
If IRMS succeeds, it could quietly anchor long-term fiscal stability. Better revenue means more capacity for health, education, infrastructure and social policy. A stronger formal economy means more credible growth. Over time, it changes behaviour: the more normal formalisation becomes, the smaller the space for informality.
Montenegro’s path to sustainable development does not only depend on large infrastructure or foreign investment headlines. It depends on whether the core machinery of the state functions fairly, transparently and modernly. IRMS may never feel as dramatic as a motorway opening ceremony — but in economic terms, it could prove far more important to the country’s future.
