Taxation system discourages entrepreneurs Taxation policy of Montenegro prevents stimulation of entrepreneurs since taxes on wages, turnover and services are too high, claims director of the Agency for small and medium entrepreneurs, Zoran Vukcevic. “Taxes on wages of 105% is one of the reason why many people work illegally, and other taxes are not paid as well because they are high,” said Vukcevic in his statement for Montena-business Vukcevic said that the state should stimulate the entrepreneur who wanted to invest 100,000 DEM into a company and convince him that the money would be paid back. “The tax is calculated on real possibilities of its paying and it is about 15% in Slovenia,” said Vukcevic. As an important segment of reform policy Vukcevic mentioned introduction of VAT (Value Added Tax) taxation system, by the model used in European states. Speaking of the reform of the law on enterprises, Vukcevic said that the Agency would soon propose simplification of not only registration, but also on obtaining of the license for work for companies. “The procedure of obtaining licenses is much more complicated than the registration of companies, and we shall propose concrete suggestions for alteration of these procedures,” said Vukcevic. Vukcevic added that in cooperation with the European Agency for reconstruction, the Agency for small and medium enterprises worked on constitution of local business centers in Montenegro. “Centers in Montenegrin towns should help entrepreneurs in making their business plans, improvement of activities and increase of profit and improvement of quality of products and services,” said Vukcevic. That project, that would request the aid of 6 million DEM from donators, is to be presented by Montenegrin delegation at the Donators’ conference tomorrow. Vukcevic said that it was very important to form local consultants and experts for different fields who would be able to properly help entrepreneurs in improving their business activities. Regarding that issue, Vukcevic said that, with the aid of Germany, the training for young entrepreneurs was underway and that they would later pass on their knowledge on others. “Montenegro has no specialists that would be good consultants and that deficiency is frequently presented to foreign experts who act as if we were an organized state. That is why many of their ideas are not applicable,” claimed Vukcevic. Cash registers Vukcevic said that the Agency for development of small and medium enterprises directed a request to all competent institutions to stop introduction of income tax cash registers. He claims that a better plan must exist for this activity and that more institutions should be involved. “If the state really enables and protects sale of one type of cash register, than it is, indubitably, a monopole. It is impossible to introduce taxes to one group of tax-payers and not to the other as well,” says Vukcevic. He claims that this unilateral move, without simultaneous eradication of black economy and passing of good customs duty solutions cannot solve the issue of paying taxes. “It is not a concern of the state to sell cash registers, but only to lay down its characteristics. Entrepreneurs should decide who from and for what price they would buy the cash registers,” said Vukcevic.