Everything in its own time

Deputies supported the proposal of Alexander Korshunov to reduce the tax burden on the loss-making enterprises, whose revenues from sales of own products in the structure of revenues from sales of more than 70%. The initiative on amending the law "On Tax on income of organizations" was adopted in the first reading.

Today, if the organization "has worked in minus", the tax base for income tax is recalculated with the five per cent profitability. This provision, called tax losses by the people, came in the legislative environment of the Republic in the middle of two-thousand years - in more or less stable economic times. Then the state, regularly arguing, that the main purpose of business - profit, raised the issue that the assumption of losses should be doubly disadvantageous for economic entity.

Alexander Korshunov emphasized that such a practice is justified by stimulating exclusively in terms of economic growth. Indicators of Pridnestrovie are opposite today. Republic survives in difficult both intra- and external conditions. 33% tax burden that rests on the shoulders of Pridnestrovian business, only state with a developed economy can afford. Taking into account that the level of GDP per capita is slightly more than 2,000 dollars, Pridnestrovie clearly can not be in this category.

The fact that the proposed measure is not new was noticed in the course of the discussion of the law-in-draft. The President of PMR Yevgeny Shevchuk proposed a similar initiative in 2009. Supported by the Supreme Council, it allowed Pridnestrovian entrepreneurs keep afloat and maintain the industrial potential of the republic during the first crisis wave.

Deputies considered the proposal of Alexander Korshunov timely. The law-in-draft passed the first reading.