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Montenegro Scraps Tax on Mobile Phone Bills

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The government of Montenegro has passed its 2014 financial budget, and scrapped a mobile phone tax that had been introduced in July 2012.

The government had tried to lift the existing 1 percent tax on phone bills over EUR5 to a 7 percent levy, but the proposal was blocked by opposition politicians.

As a consequence, the existing tax has also been scrapped. The tax had a big impact on mobile phone usage in a country where the average monthly salary is just EUR480.

Prime Minister Milo Djukanovic said that the government was ready to accept a solution better than a tax on mobile phone bills if there was any.

The government is still forecasting a budget deficit of 2 percent on GDP growth of 3.6 percent.

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Tags: Montenegro