Criticism of VAT increase and its potential harm to Montenegro’s tourism industry
, NewsJovo Perović, a candidate from the “European Alliance – Petar Odžić (SDP, SD, LP, and Citizens) – Clean Choice” list, has criticized the government’s decision to raise the VAT rate from 7% to 15%, warning that it will have serious long-term consequences for Montenegro’s tourism industry. As an experienced professional in the hospitality sector, Perović believes that this tax hike will put an overwhelming financial burden on hoteliers and negatively impact the country’s competitiveness in tourism.
Perović pointed out that the VAT increase—more than doubling the previous rate—was implemented without any thorough analysis of its potential effects. He described it as a major misstep that will not only reduce the revenue of hoteliers and accommodation providers but also threaten the future of tourism in the country.
He also emphasized that the government’s decision-making, driven by unrealistic populist promises, reveals a lack of understanding of basic tourism principles and a dangerous disregard for the long-term sustainability of Montenegro’s tourism sector.
“Our priority after the upcoming elections will be to engage experts with practical knowledge of tourism to restore our municipality’s competitive edge over other tourist destinations. We must work together with dedication to create a favorable environment for both tourism and business, which will attract new investors and visitors,” Perović stated.
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