The Committee on Economy, Finance, and Budget has approved seven amendments to the Law on Real Estate Tax, officially incorporating these modifications into the law.

These amendments were requested by deputies of Albanian national parties, allowing municipalities the option to reduce tax rates on real estate utilized for agricultural purposes by up to 90 percent of the tax obligation. Currently, the law mandates a minimum reduction of 70 percent.

This change implies that taxpayers could see reductions of as little as 20, 10, or even 0 percent rather than the guaranteed 70 percent. Another amendment was proposed to permit reductions ranging from 20 to 90 percent. Moreover, MPs from the European Movement have submitted amendments urging the relevant municipal authority to establish clearer criteria for assessing real estate taxes.

Specifically, four amendments were introduced by Albanian national party MPs Nikola Camaj, Artan Čobi, and Ilir Čapuni, in addition to two from Europe Now Movement MPs Tonći Janović and Dražen Petrić. Čapuni submitted a separate amendment, but it was agreed to incorporate it through the Committee report for expediency, with the formal withdrawal of the amendment.

Čapuni clarified that the first amendment empowers municipalities to decide on tax reductions ranging from 20 to 90 percent. The second amendment involves a technical correction, the third seeks alignment with the emerging context and the adoption of the Law on Construction of Facilities, while the fourth expands the tax break scope to exclude airports and expressways.

He also mentioned that the fifth amendment is technical and pertains to law harmonization.

Janović explained that his amendment introduces an obligation to pay real estate tax, specifying that the detailed criteria for this are to be established by the relevant municipal authority. Additionally, the tax on undeveloped land has been removed.

Mišela Manojlović, representing the Association of Municipalities, noted that in mid-April, the Constitutional Court declared provisions of the law relating to buildings under construction, which are the subject of Čapuni’s amendments, as unconstitutional. She indicated there is a procedural channel for the Constitutional Court to reassess this ruling, emphasizing the urgency for these amendments to pass to avoid potential losses in the millions.

All amendments were accepted by the committee and are now part of the law.

The Chairman of the Committee on Economy, Boris Mugoša, reported that on June 19, the Government proposed Nina Vujošević for a position on the Fiscal Council, while the President of Montenegro nominated Stevan Gajević in March, with hearings for these appointments set to continue on July 7. He also announced that Nikola Vukićević and Lidija Martinović would be called for hearings then.

Additionally, candidate hearings for the Central Bank Council are scheduled for next week.

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