Tax support for utilities

Deputies of the Supreme Council made an amendment to the law “On Additional Measures aimed at Stabilizing Pridnestrovian Economy”. This legislative initiative was made by the Government. The law-in-draft is based on the implementation of 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 the corresponding communal infrastructure.

Operation and repair, including overhaul, of 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 sector from consumers for the services provided are not enough to cope with their tasks in full. It is also necessary to take into account the high degree of deterioration of the housing stock. It varies from 50 to 70 percent.

The law-in-draft proposes to exempt housing and communal services from paying income taxes on such activities 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 reach 36.5 million rubles.

A 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 their intended purpose - for major repairs of the housing stock.

As part of the discussion, Deputy Oleg Vasilatiy proposed systematic approach to resolving these issues, for the state to fulfill its obligations to pay utility bills to the benefits provided by the state to citizens, as well as for the maintenance of organizations funded from budgets of various levels. His colleague Andrei Sipchenko proposed not to exempt housing and communal services enterprises from paying corporate income tax, but to provide annually funds to support the industry in the law on the republican budget. The head of the parliamentary committee on state regional policy Anton Onufrienko believes that the proposed rule should be extended not only to municipal management companies, but also to organizations of other forms of ownership.

As a result of the vote, the deputies adopted the law-in-draft in first reading.