The Supreme Council
of the Pridnestrovian Moldavian Republic

Official Website

The crisis has not receded

Комитет по экономической политике, бюджету и финансам

25.02.2016

Renovated in the sixth convocation the composition of the Parliamentary Committee on Economic Policy, Budget and Finance at the beginning of its activity has announced that a priority is to work out the final version of the anti-crisis measures. There have been many proposals last year, but there even more were obstacles to their implementation. Today, the Committee resumed its consideration of the law-in-draft "On additional measures aimed at stabilizing the PMR economy". It is an initiative of deputies Alexander Korshunov and Peter Pasat. It was introduced spring last year. The official conclusion of the government on the law-in-draft has been received. During this time, we changed, unfortunately not for the better, both external and internal economic conditions. Therefore the initiative as such needed to be revised, discussion, adjustment before the proposed amendments to it. A new round of anti-crisis discussion was made at the meeting of the working group. The moderator of the meeting, the deputy chairman of the relevant committee, who is also one of the authors discussed initiatives of Alexander Korshunov. Legislators, representatives of the executive authorities and the business community have studied each amendment to the law-in-draft.

A huge number of amendments were introduced by Victor Guzun. All of them are designed for led by him Enterprise and Industry Committee in collaboration with businesses. Many diverse proposals related to supporting specific industries, such as shoe and construction. Issues of facilitating taxes, but subject to maintaining jobs were discussed. They talked about the disadvantages of tariff graduation. Parliamentarians insist that the tariff policy should be unified: the equality of all forms of ownership registered in the Constitution. Another discussed proposal involves fixation of Uzbekistan minimum wage at the level of 2015. In case of growth the cost of patents, which is directly dependent on this calculated level will increase. There are many issues today in the sphere of passenger transportation. Having responded to the appeals of taxi drivers on Entrepreneurship Committee it was proposed to remove from their obligation to pay a mandatory fee for the parking law, that at least some relief from the financial burden which rests today on legitimate taxi driver patent owners. Different opinions were sounded in response: that approach to all (individual entrepreneurs and legal entities) must be identical, that the reduction of 25% of the price of fuel has become a good tool for the representatives of this sector of the economy. There was a proposal not to be restricted by a local measure, and once again gather representatives of all areas of passenger transport sector and to study the issue comprehensively.

The authors themselves proposed amendments to the initial version of the law-in-draft. There is a proposal newly created manufacturing plants release for 5 years from the payment of income tax. Finance Ministry officials say that the shortfall in the budget related to the benefits of this particular tax amounted to last year almost 1.4 million rubles, and the new rate will exacerbate the situation. The Ministry of Finance argue that the mechanism of action today (exemption from income tax in the first year of operation, payment of 25% - in the second and 50% - in the third year of the enterprise) is sufficient to encourage business start-ups. The initiators of the complete liberation ready to discuss the time frame, as well as the likelihood of the spread of the proposed regulations on the priority sectors of the economy, reflected in the Industrial Policy Concept for 2015-2019. The opinion that we must not forget about the interests of existing at the development of enabling regulations for new plants was sounded: favorable conditions for beginners can create unfavorable conditions for old-timers (competition will not be of equal value).

It is interesting, but as it turned out, the controversial proposal is connected with the release of entrepreneurs who moved to the simplified taxation system, by putting "ecology" reports. This issue is raised for a long time, the Parliament repeatedly asked citizens who say that this report - is pure bureaucracy and administrative barriers in one. Economic agents have to collect a pile of documents which, in fact, are presented empty, and if they are filled, it is not alone: ​​it is necessary to seek the help of professional accountants whose services cost ten times more than the amount of the fee, which at the end should be made to the environmental fund. The question requires further discussion and may be considered in the framework of other initiatives.

Amendments relating to the sphere of customs, handed down a separate unit. The discussion will be held tomorrow.

In general, the law-in-draft and its author's edition, and amendments – are aimed at mitigating the continuing decline in the real economy, to prevent against this backdrop of worsening existing economic imbalances and the level of life of citizens. The authors of the initiative are still in the development stage of a document saying that it is "the fruit of collective work, which is a template for the future of measures to stabilize the Pridnestrovian economy".