The price of pellets in Montenegro is currently €220 per ton plus VAT, which is €266 per ton, the Ministry of Agriculture, Forestry and Water Management has told CdM. It adds that it will consider the request of pellet producers who are asking for the VAT to be reduced to 10% or 7%, primarily due to the relief of their end users. Although some countries in the region have banned the export of pellets due to the crisis in the energy market, Montenegro is not considering that possibility for now.
Pellet owners say they have asked for a VAT reduction from 21% to 10% or 7%.
Whether Montenegro will ban the export of pellets, the Ministry notes that the legal basis for making such a decision could be contained in the Law on Foreign Trade. It stipulates that the Government of Montenegro may temporarily introduce a quantitative restriction on exports, in order to prevent a critical shortage of essential products in Montenegro or to mitigate the consequences of such a shortage in Montenegro.
It states that, as about 80,000 tons of pellets are produced annually in Montenegro for the last three years, and also two more pellet factories will start operating this year, which will increase production, the Ministry believes that there is no need to introduce such a measure. According to the data from the MONSTAT Statistical Office, pellet consumption is at the level of up to 20,000 tons per year.
