Extension of state support measures for economic entities of the PMR

It is proposed to extend until the end of 2025 the measures of state support for economic entities that incur losses due to unfavorable foreign economic factors in Pridnestrovie. The deputies discussed the Government's initiatives at today's plenary session.

The leadership of the Republic of Moldova unilaterally introduced illegal customs duties on goods imported by economic entities of Pridnestrovie from January 1, 2024. As a result, economic agents of the PMR received an additional financial burden in the form of double customs payments. Our state has already lost more than 9.7 million dollars since the introduction of illegal customs duties.

In addition, Moldova has been blocking the export of the leading enterprises of our republic - the Elektromash, Moldavizolit and Potencial plants since August 2023. There has been a ban on opening accounts in Moldovan banks for economic entities of the PMR since 2019.

The Government proposed to extend the tax and customs benefits for another year due to the continuing negative external economic impact on Pridnestrovian enterprises. They are valid for more than 2 years and are temporary. The benefits expire on December 31, 2024.

The authors noted that these state support measures were enshrined in the law "On measures of state support for economic entities of the PMR in connection with the negative consequences of external factors" during 2022 and 2023. They were later transferred to specialized laws.

The highest executive body proposes to extend the support measures enshrined in the law "On the single social tax and mandatory insurance contribution." Thus, if an employer sends his enterprise on downtime for reasons beyond his control, he will not have to pay a single social tax on payments to his employees. The amount of these payments should not exceed two-thirds of the salary at the same time.

Employees who receive payments in connection with the downtime of the enterprise are in turn exempt from paying income tax. The corresponding benefit is enshrined in the law "On personal income tax". The Government proposes to extend it until the end of 2025.

Another extended measure of state support concerns enterprises that have the opportunity to increase the wages of their employees.

The Government proposed to extend a number of customs benefits for another year. Thus, it is proposed to maintain the benefit that reduces by half – from 0.3% to 0.15% – the rate of customs duties on the customs value of goods transported between Pridnestrovie and partner countries (the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan and Ukraine).

Such a support measure is provided to enterprises of the light, metallurgical, chemical and electrical industries. These are the enterprises that have suffered the most from the negative external economic impact.

For example, the lowest growth rates of production were observed in the chemical industry, according to the data provided in the Bulletin of the Pridnestrovian Republican Bank No. 4 (263) 2024), in the first half of 2024. In some months, a more than twofold decline was demonstrated compared to the same period in 2023. At the end of the period, the volume of production in it decreased by 42.9% due to economic pressure from the Republic of Moldova.

One of the most significant rates of decline in production was in the electrical industry – 27.3%. Light industry was also characterized by negative dynamics of production in the first half of 2024. Compared to the same period in 2023, production decreased by 27.3%.

In addition, the amendments to the Customs Code of the Pridnestrovian Moldavian Republic proposed by the Government provide for the possibility of granting deferrals or installments for the payment of customs duties without charging interest.

The deputies noted that all these measures have proven their effectiveness. The deputy corps supported the Government's bills in the first reading unanimously.