New benefit for agrarians

The state will provide tax benefits to agrarians who will return to agricultural production abandoned lands on which farms, greenhouses or other buildings were previously located. The Supreme Council of the Pridnestrovian Moldavian Republic adopted in final reading the legislations of the Government of the Pridnestrovian Moldavian Republic, which introduce appropriate changes to the laws “On share tax” and “On payment for land”. The adoption of initiatives opens up new prospects for the use of lands that have so far remained neglected. The Pridnestrovian land redistribution fund contains more than 1000 hectares of land that require cultural and technical activities at the moment.

The new measures provide for the provision of benefits for up to 3 years on payments for land and on share fees for enterprises that express a desire to introduce such lands into agricultural circulation. The benefit will be 25 minimum wages per 1 hectare for land tax and 21 minimum wages per hectare for share tax. This will reduce the financial burden on entrepreneurs in the first years of using land and will allow them to concentrate their resources on land restoration. A similar tax break of 5 or 7 years is currently used by companies and farms engaged in the restoration and use of land after mining or cutting down perennial plantings.

Bringing abandoned lands into agricultural use requires significant investments. Agricultural firms or farmers will need to carry out various works, such as plowing, improving the fertile layer, removing construction waste, and these are all additional costs. Therefore, the benefits provided will enable agricultural enterprises and peasant farms to more actively use these areas and develop agriculture.

The list of lands that may be eligible for benefits has been expanded as part of the second reading at the proposal of the relevant Committee. It included land plots on which abandoned quarries are located. It is proposed that work to return lands to agricultural use be divided into reclamation, which requires design work, and cultural and technical measures aimed at restoring the productivity and economic value of disturbed lands. The adopted legislations will be sent to the President of the Pridnestrovian Moldavian Republic for signing and will come into force on the day following the day of official publication.