Reducing the income tax rate for seasonal workers

Deputies considered additions to the Law of the PMR "On income tax from individuals" in the first reading at the plenary session today. The law-in-draft was prepared on the basis of requests from agricultural producers of Pridnestrovie, who asked to simplify the process of administering the taxation of incomes of seasonal workers.

The income tax for workers hired under a fixed-term employment contract is currently 15%. There are tax deductions for large families, students, defenders of Pridnestrovie and other preferential categories. The Government's initiative proposes to reduce the income tax rate to 8% for seasonal workers in agriculture, deputies agree.

These changes will affect only those enterprises whose share of their own agricultural production is at least 60%. In addition, the amendments to the law, according to representatives of the Ministry of Agriculture and the parliamentarians themselves will allow attracting additional workers to seasonal work. The agricultural enterprises of Pridnestrovie officially hired almost 3000 people to pick strawberries, apples and other seasonal work last year. Representatives of the Government noted that its number could grow by 7-10% after the law adoption. In addition, the Chairman of the relevant Committee on Economic Policy noted that changes to the law will become a kind of guarantee for the employee and will help with official employment.

In addition, the proposed additions to the legislation will help reduce the administrative burden on enterprises that attract seasonal workers and reduce paperwork.

The law-in-draft was adopted in the first reading today. Work on it will continue.