Tax relief

Parliamentary week began in the Supreme Council with a meeting of the Committee on Economic Policy, Budget and Finance. The agenda includes 12 core issues.

A number of legislative initiatives have been taken by the Government. In accordance with the law-in-draft amending the law “On corporate income tax”, it is proposed to reduce rates for several industries, bringing them to 50% of the prevailing average profitability of the respective industries in the Russian Federation. These are industries such as agricultural, road and municipal engineering, as well as the automotive, glass and porcelain industry. The declared goals are to create favorable conditions for the development of entrepreneurship, attract investment in promising areas of production, as well as stimulate business entities, including non-residents of Pridnestrovie, to open currently absent industries in certain sub-sectors of industry.

The deputies of the relevant committee were interested in what specific enterprises tax benefits could relate to. We are talking about the capital's "Avtopoliv", Bendery Automobile Repair Plant.

Deputies of the responsible committee following the discussion recommended that colleagues in the deputy corps adopt the law-in-draft in first reading.

Another Government legislative initiative is aimed at implementing the provisions of the Pridnestrovian Development Strategy for 2019–2026 regarding the creation of comfortable living conditions for the residents of the republic. It is about maintaining in good technical condition the housing stock and communal infrastructure.

Maintenance and repair, including capital, housing stock are one of the main activities of housing and communal services organizations. At the same time, the funds collected by the Housing Authorities and other specialized enterprises of the housing and communal services sector from consumers for the services provided are not enough to cope with these tasks in full. It is also necessary to take into account the high degree of deterioration of the housing stock.

According to experts of the Ministry of Economic Development, based on the data provided to the department by the heads of state administrations of cities and districts, today organizations managing apartment buildings require 221.7 million rubles to repair the housing stock.

In this regard, in the legislative initiative on introducing amendments to the law “On additional measures aimed at stabilizing the economy of the PMR”, the Government proposes from January 1, 2020 to December 31, 2026 (the validity of the Pridnestrovian Development Strategy) to exempt housing and communal services from income tax by such type of activity as "Housing". It is assumed that a reduction in the tax burden will allow an additional 5 million rubles to be allocated annually to repair the housing stock. The volume of investments over six years may be approximately 36.5 million rubles.

The representative of the relevant ministry assured that the funds received by the public utilities after reducing the tax burden on the industry will not be spent on current needs, but will be sent for the intended purpose - capital repairs of the housing stock.

Deputies of the Committee on Economic Policy, Budget and Finance with two votes in favor and one against decided to recommend to the Supreme Council to approve the law-in-draft in the first reading.

Among the deputies considered during the meeting were legislations regarding the use of electronic reporting forms, remuneration of public sector employees, etc.