Montenegro is overhauling its tax enforcement framework by linking penalty interest rates on unpaid taxes to the European Central Bank's key interest rate.
The legislation also introduces significantly higher fines for certain tax violations, with penalties reaching up to €40,000.
The changes, reported by public broadcaster RTCG, mark a structural shift in how the country manages tax arrears.
The changes, reported by public broadcaster RTCG, mark a structural shift in how the country manages tax arrears.
By tethering penalty interest to the ECB rate, Montenegro effectively synchronizes its fiscal cost of non-compliance with the monetary policy stance of the eurozone, despite not yet being a formal member of the currency union.
This alignment underscores Montenegro's ongoing efforts to harmonize its economic policies with EU standards.
The country has used the euro as its official currency since 2002 and has long pursued eurozone membership as a strategic goal.