The government plans to introduce an excise tax of 25 cents per liter, which is expected to draw opposition from both small and large Montenegrin wine producers, amounting to four million euros annually.

In response to this proposal, the Ministry of Agriculture, Forestry and Water Management (MAFT), led by Vladimir Joković, suggests that there should be a re-evaluation to explore a compromise solution, as reported by Mine.

For Montenegrin director Nikola Vukcevic, who took up grape cultivation and winemaking following the untimely passing of his father in a bid to honor family tradition, this proposal is unacceptable. He produces between 2,000 and 3,000 bottles of wine each year, depending on the variety, and has been working to penetrate the market for several years.

“We haven’t established ourselves yet, and if our process is to be healthy, honest, and family-oriented, it is already burdened, complicated, and costly. Now, with the introduction of excise duties, it becomes even more challenging,” Vukcevic stated.

He further argued that if the government enforces excise taxes despite widespread opposition from the wine community, Montenegrin producers would be required to pay for products that have not yet been sold, nor are guaranteed to sell.

“The introduction of excise taxes threatens the competitiveness of Montenegrin wines produced in small family-run wineries in both regional and international markets, which already face challenges due to scale and tradition. This will impose new burdens on one of the few remaining production sectors in Montenegro,” Vukcevic added.

He emphasized that MAFT should have already acted to safeguard what remains if they hadn’t done so already.

The ministry agrees that the imposition of excise duties would not foster the growth of Montenegrin wineries. They noted that accepting this proposal would hinder the further development of the wine industry, asserting potential negative impacts on domestic brands in the local market.

The Ministry pointed out that the government’s stance is unjustified, as wines, being alcoholic beverages, are exempt from excise duties, but they understand the perspective of Montenegrin winemakers who market their entire production, which includes vineyards accounting for over 60 percent of output.

“It is essential to consider that no country with a well-developed wine industry and a global reputation imposes such financial burdens. In neighboring countries, such as Macedonia, Slovenia, and Serbia, where they are striving to position their wines in the international market, the excise tax on wine is zero euros,” the ministry remarked.