Budget expenditures, support for industrialists and domestic tourism

Income and expenses of the 2023 budget have been increased

The state will have a financial airbag this year. Parliamentarians voted at the end of March for amendments and additions to the 2023 budget law. A reserve of 113 million rubles has been created. It is necessary for the state to be able to fulfill its social obligations in any situation: to pay salaries, pensions and benefits on time and on time.

The deputies increased the revenues and expenditures of the republican and local budgets. The parliamentarians decided to allocate more money to the Capital Investment Fund and the Road Fund.

The Road Fund received another 45.5 million rubles. Most of this money, 37 million, is divided among all cities and regions of Pridnestrovie. The funds will come in the form of grants.

Parliamentarians within the framework of the Road Fund approved limits for paying for street lighting – 7 million rubles, another 8 – for the maintenance and repair of networks and street lighting equipment.

As for the Capital Investment Fund, an additional 133 million rubles will be allocated to it this year by the decision of parliamentarians,. This will allow the completion of work on facilities that have been transferred since last year. And add new ones. For example, 17 million will be allocated for the renovation of the city stadium in Tiraspol. This is one of the largest objects in 2023.

The Rybnitsa regional hospital was also included in the list of facilities that are being repaired this summer as part of the capital investment fund. Repairs are provided in the therapeutic building of the Republican Clinical Hospital. It is planned to spend about six million for the overhaul of the capital's educational institution for children with disabilities. The list includes such important facilities as the capital's swimming school, the Higher Art College in Bendery. Repairs will be where capital, where partial. For example, the boiler house will be repaired in Chobruchi, at the Day Care Center for Children with special needs.

Another 8 million rubles were allocated under the state target program for the purchase of vehicles for firefighters, including the transport that allows you to extinguish fires in high-rise buildings. The Ministry of Internal Affairs received additional funds.

Changes have been made to the budget of the Environment Fund. About 400 thousand rubles are allocated to Bendery. To clear and restore the 65-meter channel of Balka stream so that the water does not destroy the road and the supports of the railway bridge.

The parliamentarians in the course ofone final plenary session in the spring session decided to allocate funds in the 2023 state budget for the purchase of a drilling rig with drilling equipment for the Geological Exploration and Water Supply and Sanitation enterprises. It will be used to drill new wells.

25 million for a new landfill

Parliamentarians in early June introduced amendments to the law on the budget-2023, which relate to the construction of a new landfill for municipal solid waste.

The project is large, complex and expensive. It is necessary to build a new landfill to spend 66 million rubles, experts have calculated. This money will not be needed immediately, but over several years. The first stage of the third stage of the landfill for municipal solid waste will cost 25 million. 19 million rubles are directed from the republican budget as direct targeted subsidies to the revenues of the local budget of the city of Tiraspol, another 6 million – from the budget of the capital.

25 million are access roads, foundations, equipped drains and protective structures. There is no need to dig a new pit for a landfill. It was decided to use the old one, where sand and gravel were once mined. This will significantly reduce the cost of the process. In addition, the new landfill, although it will be located next to Malaeshty, is a little further from the village than the previous one.

It is planned that with the opening of the first stage of the third stage of the solid waste landfill, Tiraspol, Bendery, the nearest villages of Slobodzeya and Grigoriopol districts will bring garbage there. According to the law "On Environmental Protection", the construction and reconstruction of landfills for solid domestic waste is carried out at the expense of municipal eco-funds. However, neither Tiraspol nor Bendery can handle such a large-scale project on their own. Therefore, during the further construction of a new solid waste landfill, both cities and possibly Slobodzeya district, will be attracted for co-financing.

The new landfill for solid domestic waste should be operational by the end of this year. So far, the capital, like Bendery, takes out its garbage to Parkany. It will be filled by December.

The Concept of Budget and Tax Policy was adopted

The Republic adopted the Concept of Budgetary and Tax Policy after 11 years again. The document is designed for three years – from 2024 to 2026. It contains the priorities of state policy and management. The main thing is that the tax burden on economic agents will not increase. The priority is stable conditions for business entities, simplification of tax administration, the introduction of a single payment mechanism for marginal taxes and, in general, easing the administrative burden for both taxpayers and government agencies.

According to the Speaker, the Concept of Budgetary and Tax Policy is a necessary document for the republic. It regulates the principles of building and spending the state budget. The work on the document took a lot of time. It is still impossible to call it fully completed, the parliamentarians consider. The concept will be improved.

Forecast of socio-economic development of Pridnestrovie for 2024

The document assesses the dynamics of the development of the socio-economic situation in Pridnestrovie, as well as the tasks and priorities of socio-economic development outlined in the PMR Development Strategy for 2019-2026. The Government made the forecast taking into account the preservation of a stable situation in the economy and industry of the republic. Taking into consideration the projected dynamics of prices for agricultural products, as well as estimates of the harvest in 2024, the volume of gross output will increase by 2.3% compared to the expected figure for this year. A slight decline in foreign trade is expected. Thus, the total foreign trade turnover may decrease by 8.4% by the estimate of 2023, including exports within 0.7%. A decline in volumes to 10.9% is forecasted for total imports. In general, it is possible in 2024 to predict a slightly positive increase in economic development rates by 1.8% of GDP compared to the current year estimate, according to the Government.

According to the Minister of Economic Development Sergey Obolonik, the document will help form a balanced and balanced law-in-draft "On the republican budget for 2024".

Support for economic agents

The parliament voted for amendments to the law "On additional measures aimed at stabilizing the economy of the PMR", which provide for the introduction of additional measures aimed at stabilizing the economy of the republic. The changes will affect legal entities and individual entrepreneurs. Legal entities, that did not manage to switch from the simplified to the general taxation regime before January 15 were given the opportunity to do this until April 30. This applies to construction firms that worked on a simplified system, but wanted to participate in tenders for government orders.

Support for industrial enterprises

The Supreme Council supported the Government's initiative to exempt industrial enterprises from mandatory contributions to the Unified State Social Insurance Fund. This is just over one percent of income. The released funds of the enterprise will be able to use to increase the wages of their employees.

The Government considers that exemption from mandatory contributions to the Unified State Social Insurance Fund will stimulate the development of the industrial production sector, increase the number of people employed there, increase wages for employees of enterprises, increase tax revenues due to production volumes and proceeds from product sales. Revenues to the budget from the so-called labor taxes will have to grow.

There will be budget losses due to shortfalls from industrial enterprises. The Ministry of Economic Development has calculated that only by the end of the year – about 70-75 million rubles. From 26 to 30 million rubles will have to be returned to the republican budget in the form of so-called labor taxes. The Government proposes to cover the rest at the expense of budgetary reserves.

The new rule of law came into force on 1 July.

Deductions in the amount of 1% were excluded from the basic rate of the unified social tax (previously 25%) for industrial enterprises. Thus, the tax rate will be 24%. The law-in-draft will enter into force on 1 August this year.

Conditional amnesty for entrepreneurs

Parliamentarians adopted amendments to the legislation that regulate the temporary period of work of individual entrepreneurs and legal entities, which is subject to verification by the tax authorities. Clarifying norms were introduced into several laws at once.

The period of work, which can be checked by the regulatory authorities, is clearly defined. This is 6 years for legal years, 3 years for individuals. The new rules will come into effect on January 1, 2024.

Changes for individual entrepreneurs

The conditions for the transition from the simplified taxation regime to another and the return to the “simplification” have been relaxed for entrepreneurs. As part of the spring session, parliamentarians adopted amendments to the law “Special Tax Regime – Simplified Taxation System”. Amendments to the legislation were made at the request of the entrepreneurs themselves.

The return of individual entrepreneurs to the simplified taxation system and the transition to a different taxation regime can now be done at the end of half a year, and not a year later. An individual entrepreneur applying the simplified taxation system has the right to switch to a different taxation regime from the beginning of the next half-year, notifying the tax authority no later than December 31 of the year or June 30 of the half-year preceding the half-year in which he intends to switch to a different taxation regime.

Changes have been made to the payment of the vignette fee

Owners of passenger cars with foreign plates will be able to engage in industrial or commercial transportation of people or goods. Changes have also been made to the payment of the so called vignette fee. This is a new edition of the Customs Code, the Code of Administrative Offenses, the laws on customs tariffs and the Road Fund.

In this case, there will be no need to leave the borders of Pridnestrovie and pay the vignette fee again. Innovations in the legislation were adopted on numerous appeals to the Supreme Council.

Clarifications to the law "On income tax from individuals"

The law "On personal income tax" clarified the calculation of standard tax deductions for those employees who were left without work at the initiative of the employer. According to the previous norms, when an employment contract was terminated due to the liquidation of an organization or a reduction in the number or staff, a dismissed employee was paid a severance pay in the amount of the average monthly salary. In addition, the employee retained the average monthly earnings for the period of employment. No more than two months from the date of dismissal. Business entities had an ambiguous understanding of the norms of the law when it came to standard tax deductions for a dismissed employee. The amendments proposed by the deputies from the Committee on Economic Policy made it possible to eliminate uncertainties in understanding the norms of tax law.

A new rule has appeared in the law at the suggestion of parliamentarians: in the event of termination of an employment contract at the initiative of the employer and the accrual of payments due to the dismissed employee, standard tax deductions are provided to the taxpayer for each month of the tax period for which these payments were accrued. The changes will come into effect on January 1, 2024.

The indicator of the debt burden of borrowers will be able to calculate the Central Bank

The PMR Central Bank received the right to calculate the debt burden of individual borrowers and then send it to commercial banks and microfinance organizations. Such data will make it possible to assess the degree of risk of non-return by citizens of funds under credit or loan agreements.

Similar rules apply in the Russian Federation and in many other countries. The mechanism allows minimizing the risks of commercial banks on non-repayment of credit funds, and to protect citizens: there were cases when, not having the financial ability to pay off several loan agreements, borrowers were forced to sell property, including housing. The current legislation in Pridnestrovie does not restrict the right of citizens to apply to several banks at once for loans.

The methodology for determining the indicator of the debt burden per borrower, the parameters and allowable ratios of the loan funds taken and the borrower's income will be established by the regulation of the Pridnestrovian Republican Bank. Amendments to the laws “On the Central Bank of the PMR” and “On Banks and Banking Activity” will come into force on January 1, 2024.

Expansion of categories of beneficiaries

Benefits for families with disabled children on the import of cars for personal use were accepted by parliamentarians. Currently, 512 disabled children diagnosed with cerebral palsy and 151 disabled since childhood, who cannot serve themselves on their own and lead a sedentary or recumbent lifestyle, are registered with specialized specialists. The maximum amount of money that will be required from the budget for these purposes is about 10 million rubles.

The average excise duty is about $950. The amount depends on the parameters of the imported car. According to the law, excise exemption will be granted to the family once. The norm will come into force on January 1, 24.

For craftsmen

Stylized bunch of grapes, hat of Gugutsa, vyshyvanka or jug with national ornament. Handicrafts made with your own hands can now be sold legally. Parliamentarians adopted a package of legislative initiatives that regulate legal relations in this area. The craftsmen have two ways. First: apply to the State Service for Culture, get the status of a master and sell your work. At exhibitions, fairs, city and republican holidays, through souvenir shops and online platforms. Masters do not have to pay income tax.

Masters will legally receive income in this case. He will not be able to claim all the social privileges from the state. There is a second job option for those who produce handicrafts. Work on a patent as an individual entrepreneur and receive all social guarantees from the state.

Travel cashback without taxes

Tourist cashback can now be counted on by tourists who have purchased an excursion, paid for a tour of Pridnestrovie lasting at least two days, or booked a hotel for two nights or more. It will be possible to receive 20% of the cost of the excursion or the amount of the hotel reservation to the bank account. Up to half of the cost of the tour can be returned to the account. The maximum cashback amount is 1.5 thousand rubles. This proposal is new for our republic. This practice exists in many countries of the world and has long proved its effectiveness.

Partially they will not tax the income of organizations providing services in the domestic tourism market of Pridnestrovie. The cashback that comes to tourists after buying a tour will be excluded from income and unified social taxes and a mandatory insurance premium. Additions were made to three existing laws. Return funds will be received by tourists and organizations involved in domestic tourism from the republican budget. The funds for this purpose have already been allocated.

The Government and the Supreme Council expect that the adopted changes in the legislation will have a positive impact on the development of domestic tourism in Pridnestrovie.