Podgorica, (MINA-BUSINESS) – The European Alliance (EA) has proposed an act that would allow the Government to temporarily lower the value-added tax (VAT) rate in order to protect citizens’ living standards due to the consequences of the war in the Middle East.

EA representative Boris Mugosa said they proposed that, in the event of significant disruptions in global markets affecting the prices of goods and services, the Government could temporarily reduce VAT rates.

“In Montenegro, VAT rates are 21 percent, 15 percent, and 7 percent, and with this proposal we are giving the Government the ability to take urgent, quick, and efficient measures in line with ongoing developments and temporarily reduce certain VAT rates,” Mugosa said at a press conference.

He added that they ensured their proposals are sustainable, aligned with European standards, and capable of providing meaningful support to both citizens and the economy.

Mugosa recalled that some European Union (EU) member states have already taken measures to reduce VAT, for example on fuel.