Press release from the 116th Cabinet session

The Montenegrin Cabinet held its 116th session, chaired by Deputy Prime Minister for International Relations and Minister of Foreign Affairs Ervin Ibrahimović. The Cabinet adopted the Draft Law on Amendments to the Law on the Regional Water Supply of the Montenegrin Coast. The adoption of this act introduces several updates, primarily in terms of aligning the terminology of this law with the Law on Construction of Buildings, the Law on Legalisation of Illegal Structures, and the Law on Tourism and Hospitality. In addition, the deadline for collecting the special fee prescribed by the law has been extended until 31 December 2034. The amendments also create conditions for establishing a sustainable financing model for the company responsible for regional water supply - "Regionalni vodovod Crnogorsko primorje", and for the regular servicing of obligations related to loans taken for the construction of the regional water supply system.

The Cabinet adopted the Draft Law on Amendments to the Law on Tax Administration. The proposal envisages a normative improvement of provisions regulating the obligation of general tax registration for individuals. Namely, the need arose to comprehensively define taxpayers subject to general tax registration in order to ensure legal certainty, equality of all taxpayers, and consistent implementation of regulations, with the aim of establishing comprehensive records of taxpayers. The proposed legal solution will ensure equal treatment in general taxpayer registration for both domestic and foreign legal entities, as well as domestic and foreign natural persons. It will also directly contribute to improved control and monitoring of taxpayers and strengthening fiscal discipline.

The Draft Law on Amendments to the Law on Tax Administration defines taxpayers and deadlines for registration for all persons subject to general tax registration, as follows:

• A legal entity or organisation conducting activities, generating income, or possessing assets in or outside Montenegro must submit a registration application within five working days from the date of entry into the relevant register;
• A natural person conducting business activities in Montenegro must apply for registration within five working days from the date of generating taxable income, entry into the relevant register, or acquisition of taxable assets;
• A natural person generating income or owning assets in or outside Montenegro must apply for registration within five working days from the date of generating taxable income, entry into the relevant register, or acquisition of taxable assets;
• A foreign legal entity or organisation conducting activities, generating income, or possessing assets in Montenegro must apply for registration within five working days from the date of entry into the relevant register.
• A foreign natural person conducting activities, generating income, or possessing assets in Montenegro must apply for registration within five working days from the date of generating taxable income, entry into the relevant register, or acquisition of taxable assets.

The Cabinet adopted the Proposal for the Amendment of the Constitution of Montenegro. The proposal envisages that the Central Bank of Montenegro remains an independent and autonomous institution, accountable to the Parliament, governed by the Council of the Central Bank and led by the Governor, while a separate law on the Central Bank of Montenegro will regulate its operations. This approach enables constitutional amendments in the context of fulfilling obligations on the path toward European Union integration, specifically within closing benchmark 2 of Chapter 17 - Economic and Monetary Union. At the same time, the primary objective of maintaining price stability, entrusted to the Central Bank of Montenegro, remains explicitly defined in the Law on the Central Bank of Montenegro.

In this way, full alignment is ensured with Article 127(1) and Article 282(2) of the Treaty on the Functioning of the European Union (TFEU), as well as Article 2 of the Statute of the European System of Central Banks (ESCB) and the European Central Bank (ECB). This represents a solution consistent with the EU acquis and relevant comparative constitutional practices.

The Cabinet adopted the Information on the need to conclude a Donation Agreement with the Student Parliament of the University of Montenegro. In this context, the Government approved the text of the agreement to be concluded between the Ministry of Sports and Youth and the Student Parliament of the University of Montenegro. The agreement provides for a financial donation of €10,000 to support the implementation of the projects: "Seasonal Employment Fair in Tourism - Summer Job 2026" and "Open Days of the University of Montenegro". These initiatives aim to contribute to improving youth employability, increasing their awareness of educational and professional opportunities, and promoting healthy lifestyles. The planned activities are also significant for improving the position of young people, strengthening intersectoral cooperation, and raising awareness of the importance of physical activity for the health and well-being of citizens.