State support of the ports of Pridnestrovie

Deputies considered a number of legislations that are planned to be submitted to the first plenary meeting of the autumn session. It will take place on Wednesday, the 11^th of September.

Parliamentarians in the course of the meeting discussed amendments to the Excise Law proposed by the President. This law-in-draft is aimed at developing the compressed natural gas market in Pridnestrovie.

The excise tax on propane, a mixture of propane with butane and methane, sold as automobile fuel, was introduced here in 2013. However, a comparative analysis of excise taxes on the fuel revealed that in neighboring countries excise taxes apply only to propane or propane-butane. The absence of an excise tax on methane, used as a motor fuel, contributes to the development of the compressed gas market and its wider distribution. In addition, methane is more environmentally friendly compared to other motor fuels and complies with the Euro-5 and Euro-6 standards.

The authorities of many countries resort to incentive measures to popularize gas fuels. Among such measures is a ban on the use of diesel fuel in light and medium-duty vehicles within cities and environmental zones. For example, in Italy and Germany, financial incentives include lump sum payments for the conversion or purchase of new vehicles using compressed natural gas; in Sweden, car owners are exempt from parking fees. In the EU countries, duty-free import of imported gas equipment has been introduced; in addition, there is no price reference for gas fuel to oil.

In order to promote the development of the compressed natural gas market in our republic, as well as taking into account the practice of Russia, Moldova and Ukraine, this project proposes to exclude methane gas sold as automobile fuel from excisable goods.

The deputies of the Committee supported this initiative and will recommend to the Supreme Council to adopt the law-in-draft in the second reading.

In addition deputies during the meeting discussed law-in-draft on introducing amendments to the law “On additional measures aimed at stabilizing the PMR economy” proposed by the Government.

This law-in-draft was designed to support specialized organizations performing hydraulic works. These are environmental measures for the rehabilitation of the channel and the banks of the Dniester River, for cleaning of water intake zones from silt and other hydraulic works. Currently, in our republic, such types of work are carried out by the Rybnitsa River Port and the Bender River Port.

The financial and economic situation of these organizations for 2016-2018 is characterized by decrease in the main indicators of their activities. According to the results of 2016 and 2017, the Bendery river port showed negative financial results.

The developers of the law-in-draft suggest reducing the tax burden for these enterprises, and direct the net profit to capital investments in new technological equipment, overhauls, expanding production and improving the material and technical database of organizations.

The Economic Policy Committee supported the law-in-draft and will recommend that the Supreme Council adopt it in the first reading.