The Montenegro government has rushed through an emergency 2% rise in its Value Added Tax rate this Tuesday under pressure from the International Monetary Fund. The effective date will be 1 July 2013.
The rise will take the VAT rate to 19%, still below the EU average VAT rate of over 21%.
The IMF has raised concerns around Montenegro’s uncontrolled sovereign debt levels of 54% of GDP. The former Serbian region has still not fully recovered following its 2006 independence.