Ministry of Finance: We do not expect Radulovic to have a sense of fairness

#ŽarkoRadulović #HotelSplendid #MinistryOfFinance #ValueAddedTax(Vat)


The Ministry of Finance responded to the statement of the Social Democrats (SD) presidency member and co-owner of the Splendid hotel, Zarko Radulovic, that “the initiative of the finance ministry, which is to assess the constitutionality of amendments to the Law on Value Added Tax (VAT) is pure political marketing”, pointing out that the ministry’s proposal was strictly principled and in line with the constitutional concept of justice, adding that all are equal before the law.

“Radulovic should know that introducing lower VAT rate only to certain categories of facilities, which include the hotel co-owned by him, was a discriminatory measure violating economic policy of equal conditions for all participants of the competition. In practice, it would mean that Radulovic and a few people like him would pay lower taxes than thousands of other hotels and restaurants. According to Radulovic, it would be fair if he paid lower tax and if all others, who make a majority, paid higher taxes. We believe it is unfair and that it violates the equal tax treatment on the market”, the ministry stated.

On the other side, the ministry explained, the provisions disputed by the Ministry of Finance are contrary to the principle of fairness in taxation, because they do not allow the owners of thousands of restaurants and hotels, which do not fall within the privileged legal category, to pay taxes the same way as a few privileged entities, including Radulovic’s hotel.

“Radulovic’s position, according to which wealthy ones should be favoured by the state and have even more, whereas the state should discriminate against those who have less, is understandable. This development philosophy turns the society into a group of privileged, who get rich at the expense of citizens”, the ministry pointed out.

As the ministry stated, it does not expect Radulovic to have a sense of justice and even less for the rule of law.

“Admittedly, even Radulovic said that the proposed solution which was adopted was not the best one. However, given that he and a group of privileged people should pay less, the solution is acceptable for him. Of course, he is not interested in the fact that the vast majority of hotels and restaurants will pay VAT at 19% rate and he and a group of the privileged at 7% rate”, the ministry stated.

In addition, the amendments to the law introduce a lower, 7% rate on alcoholic beverages.

“This is contrary to the practice of the European Union. And do we need any comment on the proposal that tax on alcohol beverages should be lower in privileged hotels and restaurants, whereas certain more important goods and services necessary in everyday life of Montenegro citizens should be taxed at 19% rate”, the ministry concluded.

Source: Cafe Del Montenegro