The Tax Relief

New working week in the Parliament was opened by the session of the Supreme Council's Committee on Economic Policy, Budget and Finance. Draft laws that regulate the tax sphere will be submitted during the next plenary meeting, which will be held on September 13.

They talked about the high tax burden in the real sector of the economy from various tribunes all recent years. Now the words began to move to the point. The eight-month joint work of deputies, experts of the Supreme Council and the Government was embodied in the draft law "On Amendments and Addendum to the Law of PMR "On the Tax on Organizations Income". Under the current tax system, this is the main tax paid by business entities. This payment is the basis of the republican budget.

The essence of the legislative innovations with which the Government came forward is the rational redistribution of the tax burden. This process consists, basically, in reducing the rates of corporate income tax for industries (sub-sectors) and activities of Pridnestrovian economy. Tax breaks, in the first place, will affect the industrial sector, which employs 27 thousand people and gives 30% of GDP. As an example: the rate will decrease from 3.5% to 2.4% in the electrical industry. Such actions will allow enterprises to increase production volumes, taxable base, deductions to the budget, create new jobs. They will be able to invest a part of those released due to the reduction in the tax burden of funds in the modernization of production.

Unfortunately, at the initial stage of the introduction of these measures, the Government expects a decrease in tax revenues of about 27 million rubles. However, in the long term, these temporary budget losses will be compensated for by increasing production volumes and, as a result, tax payments.

The head of the profile parliamentary committee Alexander Korshunov commented on the essence of the law-in-draft to journalists.