The Support for Producers

The Committee on Economic Policy, Budget and Finance held its first meeting in the new convocation. But deputies started the legislative activity earlier. The main object of their attention since the end of last year was the draft budget 2016. Anti-crisis measures were discussed as well. This week a joint meeting of members of parliament, members of the Government and representatives of the business community was held. According to its results the legislative initiative of the president, designed to support the industrial enterprises of the republic was placed for consideration of the Committee meeting. It was suggested not to use the so-called tax losses in respect of organizations whose revenue from sales of own production was more than 70% of the sales revenue.

Deputy Finance Minister Alla Skibenko introduced a law-in-draft. According to it, devaluation of national currencies and a reduction in the purchasing power of the population of neighboring countries provoked a drop in demand for Pridnestrovian products, loss of markets. Losses arising from exchange rate differences currency contracts lay down our producers, exporters. Certification – is a serious problem. In addition, shipments of produced in Pridnestrovie and the delivery of goods to the Republic of raw materials and components through the territory of Ukraine has become risky. These factors exacerbated the situation of producers, having brought them to the line loss. Both the President of state and members of parliament and government representatives agree that in these circumstances, tax losses are unnecessarily. Although it was difficult to convince the latter in the fifth convocation. There was a negative opinion from the government for received by the Supreme Council in March last year initiative, developed at the request of SPAPP Alexander Korshunov. The parliamentarian also offered to suspend the provisions of the law "On Tax on income of organizations", which obliges the company in case of damages to recalculate the tax base for income tax based on five per cent profitability. Despite the lack of government support, the law-in-draft was adopted by the deputies in the first reading.

As a result, members of parliament are working in parallel on two identical legislations. Discussion of presidential, requiring some editorial adjustments, agreed on the decision to continue on Monday. Parliamentary initiative was recommended by committee for adoption in the second reading as amended by Alexander Martynov. Its essence is to extend the period of validity of the proposed rules by the author.

Another issue raised in the context of the discussion of the anti-crisis initiatives - the likelihood of the spread of the proposed standards on manufacturers not only goods, but also work and services. In addition, Peter Pasat asked about why this support is bypassed by small businesses working in the service sector. Deputy Minister of Finance said that on the basis of the existing budgetary framework, the government still cannot afford it.