Markovic: State Must Fight the Grey Economy

By , 22 Mar 2018, 15:54 PM Politics
Markovic Markovic Dusko Pejovic

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The president of the Government explained that much more developed countries have been dealing with the grey economy issue, but that in Montenegro, there is currently no official data analysis related to the same

Activities performed by the state authorities on combating the grey economy issue is giving results, said the prime minister Dusko Markovic, and added that the Government would intensify further checks related to the oil derivates market, tobacco products, the rental of private accommodations on global platforms and residence tax payments.

“By doing so we will have an effect on lessening the disloyal competition, expand the revenue income foundation and contribute to the achievements for the budget’s profit, which is planned at the level of 1,77 billion euro this year," said Markovic in the Parliament during the Premier’s hour.

He said that the state needs to fight the grey economy issue, which comprises the companies as well - not only its bad influence on the overall economy.

“We are fully aware of the danger caused by the grey economy and its seize, and we are dealing with it every day," said Markovic responding to the question by the delegate from the Liberal party Andrija Popovic.

Markovic explained that better-developed countries have dealt with the grey economy issue but that in Montenegro, there is currently no official data analysis related to the same.

“There is, however, a possibility to measure the revenue capacity and tax gap for certain revenue forms and total incomes. Besides this, there is our strong commitment to follow and combat this undesirable occurrence," Markovic added.

He said that the stated loss of 300 to 400 million euro in the touristic sector per year is incorrect.

“The stated amount is probably related to the budget’s loss because only the budget records losses from the grey economy and the subjects who perform this activity informally do not have any losses, but they only hide their incomes. If the data on losses would be realistic, then this calculation will show that the hidden incomes in the touristic sector are more than one billion euro per year, which is unrealistic," said Markovic.

He stated that the Government is doing everything in their power to introduce the informal economy into the legal procedures which can be witnessed by the data on continuous growth of original incomes year after year.

Asked a question by Ervin Ibrahimovic from the Bosnjacka party regarding what actions the Government takes in the affirmation and valorization of the natural potential in Plav and Gusinje, Markovic responded that the half of the natural wealth of Montenegro is located in the North.

“These two municipalities deserve a thoughtful valorization to contribute to a more qualitative life for their citizens, first of all, due to the geographic positions of Plav and Gusinje," said Markovic.

He reminded everyone that throughout the capital budget, construction projects are being executed continuously.

Text by Mina Business, on March 21st, 2018, read more at Vijesti

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