As of 30 September 2026, Montenegro’s Ministry of Finance announced that the country’s budget revenue for the first eight months of 2026 surpassed €2 billion, marking a significant increase compared to the same period last year. The report, published by the Tax Administration of Montenegro, highlights robust growth in value-added tax (VAT), corporate income tax, and excise collections, driven by stronger domestic consumption and improved tax compliance measures introduced under the 2025 Tax Procedure Law amendments. Capital investments recorded a 50% year-on-year increase, reaching record levels as the government accelerated infrastructure projects funded by EU pre-accession funds and public-private partnerships. The data underscores the effectiveness of recent digitalization efforts in tax collection, including the mandatory e-invoicing system launched in January 2026.
Key Takeaways
- Revenue Surge Across Major Tax Heads: VAT collections rose by 18% year-on-year, supported by the new e-invoicing mandate that reduced the VAT gap. Corporate income tax revenues grew 22% due to higher profitability in the tourism and energy sectors, while excise duties on fuel and tobacco increased 12% following the 2026 excise calendar alignment with EU directives.
- Capital Investment Boom: The 50% jump in capital expenditure reflects the rollout of major highway and energy projects, including the Bar-Boljare highway section and the underwater gas pipeline. These projects benefit from tax incentives under the Investment Promotion Law, which provides accelerated depreciation and VAT deferral for strategic investments.
- Digital Compliance Drives Efficiency: The Tax Administration’s shift to real-time reporting and automated risk analysis has cut processing times for refunds by 40% and increased audit coverage. The platform now integrates with customs and banking data, enabling cross-checks that have uncovered €45 million in previously undeclared liabilities since January 2026.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement