Results of the VI convocation: economic policy

The task of the deputies of the Supreme Council of the VI convocation was the return of stability to the economy of the republic. Deputies of the Supreme Council of the 6th convocation adopted the law "On some additional state measures aimed at minimizing the negative impact of external economic factors" in order to preserve production potential and enable new industries to develop, including those providing import substitution and food security. The law launched the process of financial and construction amnesty on the territory of the PMR, gave the government the right to set maximum levels of retail prices and trade markups for food products. This measure was aimed, first of all, at ensuring the protection of the population from unjustified overpricing and at suppressing monopolistic activities in the PMR product market.

Deputies adopted the law “On Stabilizing the Banking System of the PMR” to preserve the stability of the banking system, protect the interests of creditors and depositors, improve the quality of assets of credit institutions. The law provided for a set of measures necessary to improve the banking system of the PMR. In particular, the conditions and procedure for the nationalization of financially unstable banks are enshrined in law. The adoption of this law helped to preserve the stability of the banking system, protect the interests of creditors and depositors of credit institutions of the republic, improve the quality of assets of credit institutions and ensure state security. The acquisition by the state of the banks' problem assets made it possible to avoid bankruptcy proceedings against them, which could have a negative impact on the clients of these banks.

The Law "On Microfinance Activities and Microfinance Organizations" was adopted by the Supreme Council to create a legal framework for microfinance organizations. The law defines the specifics of such activities, the procedure and conditions for the provision of microloans, as well as the procedure for the creation, operation and reorganization of microfinance organizations. The document contains the rights and obligations of the central bank of the PMR to control microfinance.

In order to reduce the tax burden on enterprises that operate in the republic, the Supreme Council of the VI convocation adopted amendments and additions to the law "On tax on corporate income". Taxes were reduced for enterprises of ferrous metallurgy, chemical industry, machine-building enterprises, for glass and porcelain-faience, clothing and food industries.

The same law exempted from taxation the financial resources received by health resort and children's health institutions from the republican budget to pay for health vouchers. The law adopted by the Supreme Council made it possible to provide support to sanatorium-resort and children's health institutions of the republic, which take part in the implementation of annual children's health campaigns.

A number of laws adopted by the Supreme Council of the VI convocation were aimed at supporting organizations of the shoe and clothing industry. Amendments to the law "On additional measures aimed at stabilizing the PMR economy" from January 1, 2019 to December 31, 2021, reduced the income tax received by organizations in the footwear and clothing industry from processing customer-supplied raw materials.

The Supreme Council amended the law "On additional measures aimed at stabilizing the PMR economy" in order to attract people from neighboring states to work in the industries and agriculture. Today, people who work at our enterprises, but are not residents of the PMR, are entitled to receive standard tax deductions based on the law “On Personal Income Tax” in force in Pridnestrovie.

Amendments to the Law "On Additional Measures Aimed at Stabilizing the PMR Economy" for the period from January 1, 2019 to December 31, 2021, were exempted from paying income tax (excluding contributions to the Unified State Social Insurance Fund for pension insurance purposes) specialized organizations, carrying out hydraulic works. This was done in order to support enterprises carrying out hydrotechnical works and environmental protection measures to clean the channel and banks of the Dniester River. In addition, the amendments to the law reduced the cost of credit resources provided by PMR banks to economic entities operating in priority sectors of the economy for the implementation of development programs, technical renovation, and production modernization.

The Supreme Council introduced amendments and additions to some legislative acts of the PMR in order to increase the share of non-cash payments and, as a result, decrease the share of the shadow market. These changes provided an alternative opportunity for PMR pensioners to receive pensions to a bank account, and for public sector workers - wages. As a result, the budgetary expenditures for the delivery of pensions and payment of salaries have decreased.

As part of the harmonization of the PMR legislation with the legislation of the Russian Federation, the Supreme Council made amendments and additions to the PMR Customs Code. The customs business of Pridnestrovie was brought in line with international norms and the Customs Code of the Eurasian Economic Community. The gaps and contradictions in the current legislation of the PMR in the legal regulation of relations arising during customs clearance were eliminated.

A separate line in the legislative activity of the Supreme Council of the VI convocation is the law "On state support during the period of emergency in 2020". In order to enable enterprises and organizations to continue to work during this difficult period and to preserve their teams during the period of the state of emergency, organizations applying a simplified taxation system were exempted from income tax. The tax credit was introduced for downtime for reasons beyond the control of the employer and employee.

During the period of the state of emergency, in case of non-payment or incomplete payment by small, medium and large businesses, whose activities were suspended, no penalties were charged by power supply organizations. Energy supplying organizations were able to restructure the debt that arose during the state of emergency.

The list of Pridnestrovians eligible for food packages was expanded if visits to educational institutions were temporarily suspended for the period of emergency and the validity of quarantine restrictions.

The same law determined the procedure for assigning a pension, the right to which came during the period of the state of emergency. The period of payments of previously assigned pensions, benefits, compensations and other payments, issued upon registration at the place of residence or at the place of stay, which expired during the period of the emergency, was extended.

Citizens who are entitled to the appointment and payment of a monthly child allowance were able to extend the re-registration period.

At the time of the emergency and quarantine measures, banks with state participation were able to provide interest-free loans to individuals - residents of the PMR, who are pensioners and receive a Russian pension.

In addition, the period of validity of previously assigned qualification categories to medical workers of organizations was extended, regardless of their departmental subordination.

In connection with the preservation of quarantine measures on the territory of Pridnestrovie, the Supreme Council adopted a number of legislative acts. They extend the benefits for various categories of citizens of our republic, as well as for those economic entities that continue to suffer losses.