Montenegro has improved its business environment by reducing labor burdens and addressing the informal economy, according to Prime Minister Milojko Spajić. During the “Open with the Prime Minister” event, organized by the American Chamber of Commerce (AmCham), Spajić emphasized that the government would continue focusing on stabilizing indirect taxes and reducing direct taxes.
Spajić highlighted the reduction in the informal economy, praising improvements in tax administration efficiency, including VAT refunds, which have positively impacted business liquidity. He also discussed the government’s commitment to simplifying the tax system and maintaining predictable indirect taxes while exploring further reductions in direct taxes, which burden the economy.
In terms of judicial reform, Spajić acknowledged the need for improved efficiency in the court system, which remains a challenge for businesses. He agreed with AmCham’s concern about the gray economy, especially in tourism, and announced plans to strengthen inspection oversight.
Spajić also announced a project to provide free programming courses for Montenegrin citizens, aiming to improve digital literacy and prepare the workforce for the job market.
AmCham’s report on the business environment showed a slight improvement, though many members feel there hasn’t been significant change in the last decade. The American Ambassador, Judy Rising Reinke, emphasized the growing interest of U.S. investors in Montenegro across sectors like infrastructure, energy, tourism, IT, and healthcare.
The report highlights key areas affecting the business climate, including rule of law, human resources, digital transformation, healthcare, taxation, construction, tourism and ESG principles, which are becoming essential pillars for modern business environments.
