Social Justice Action: Motorway Exemptions € 234.6 million

The ASP said that close to 5.8 million euros were returned to the Chinese CRBC, about 2.2 million to Bemax, 906 thousand to Cijevni Komerc, 670 thousand to Montenegro Petrol, 2.9 thousand to Ramel, and one thousand euros to Kodar.

Photo: Luka Zekovic

The total exemptions from duties from the beginning of the construction of the section of the highway Smokovac – Mateševo ​​in March 2015, until the end of January this year, amount to 234.6 million euros, according to the latest data from the non-governmental organization Action for Social Justice (ASP).

“Exemptions from value added tax (VAT) are 146.3 million, which was the amount until the end of July last year. Namely, from last August until the end of January this year, there was no VAT exemption on the project of the first section of the highway, because the main contractor, the Chinese company China Road and Bridge Corporation (CRBC), did not show taxable turnover, “they said. are from that NGO.

Data held by ASP show that, in the same period, exemptions from taxes and contributions on foreign citizens’ salaries at CRBC increased by 2.2 million euros, so that by the end of January this year they reached the amount of 30.7 million euros.

“Regarding the refund of excise duties on fuel, there were no refunds in the last quarter of last year, and until then the refund of excise duties for CRBC and subcontractors amounted to about 9.5 million euros,” the statement said.

The main contractor and subcontractors, engaged in the project, have the right to a refund of part of the excise duty on fuel.

The ASP said that close to 5.8 million euros were returned to the Chinese CRBC, about 2.2 million to Bemax, 906 thousand to Cijevni Komerc, 670 thousand to Montenegro Petrol, 2.9 thousand to Ramel, and one thousand euros to Kodar.

“When it comes to exemption from customs duties, from July last to the end of January this year, they amounted to just over 55 thousand euros. Until then, CRBC has been exempted from paying customs duties and VAT on imports in the amount of about 48 million “, it is specified in the announcement.

According to the contract for the construction of the section of the highway from Smokovac to Mateševo, about 42 kilometers were supposed to cost 809 million euros, but due to subsequent works, several annexes to the contract were signed, and the public, as claimed by ASP, estimates that the section will cost over a billion euros.

“The construction of the first part of the highway is almost two years late and, instead of in May 2019, the works, as expected, could be completed by the end of this year. However, the corona epidemic is not subsiding, so the question is how much it will affect the completion by the end of this year, “said the NGO.

As they concluded, the fact that in the period of half a year there was no exemption for VAT, and at the end of last year there was no excise tax on fuel, could indicate that the Chinese contractor with subcontractors is not undertaking significant works at the end of the project.