COVID – Economic measures

09 Sep 2020
Sets of economic measures to mitigate the consequences caused by the coronavirus epidemic at the Municipality of Tivat The world, the region, Montenegro, and thus Tivat, are suffering significant economic consequences caused by the global coronavirus epidemic, which does not abate and prevents the regular functioning of all economic branches. The tourism sector, on which the state economy, as well as the finances of local government, rely to a large extent. is particularly endangered,  As a result, a large number of caterers, hoteliers, owners of private accommodations are endangered, and all citizens of Tivat are feeling the consequences. Having in mind the obstacles that each member of our community faces, one way or another, the Municipality of Tivat has adopted two sets of economic measures that represent support to businessmen and citizens of Tivat. The total value of both sets of measures that have been adopted so far at the sessions of the Municipal Assembly of Tivat is slightly less than 1.5 million euros. The first package of measures, adopted in May 2020, is worth just over half a million euros and includes the following:
  • Postponement of payment of real estate tax for 2020 - I installment until August 31, II installment until November 30;
  • Postponement of the execution of the decision for forced collection for local public revenues for 60 days, for forced collection procedures initiated in 2020;
  • Postponement of payment of tax liability on the basis of surtax on personal income tax for 90 days;
  • Exemption from payment for the use of commercial facilities that are accessible from the municipal road for 2020 for 90 days;
  • Exemption from rent of business premises owned by the Municipality for 90 days;
  • Exemption from payment of real estate tax for 2020, for land registered for agricultural activities;
  • Exemption from payment of the license fee for taxi associations and entrepreneurs, from March 19 to December 31, 2020, and
  • Reduction of obligations to pay membership fees to the Tourist Organization of Tivat in the amount of 50% for 2020.

The second package of measures adopted in the first half of August is worth almost one million euros and contains the following:

  • Reduction of rent payment obligations for tenants of business premises and land owned by the Municipality by 50% for the period from July 1 to December 31, 2020;
  • Reduction of local utility tax payment obligations by 50% from July 1 to December 31, 2020;
  • Reduction of the obligation to pay real estate tax for individuals and legal entities, by 10%, for 2020;
  • Exemption from the obligation to pay the fee for the use of municipal roads for 2020;
  • Exemption from the obligation to pay local administrative fees for 2020 and
  • Suspension of collection of default interest for debt based on real estate tax for 2020.

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