Businessmen demand lower local taxes in villages

21.01.2014 13:21
2041
2 minute(s)

The capping of local taxes is favorable for the business sector of Moldova. But the ceiling of 7,100 lei set on companies working in villages and district centers must be reviewed down for villages as the earnings from a rural business are comparably lower than the profit made in a district center, considers the Small Business Association of Moldova.

In a news conference at IPN, the Association’s chairman Eugen Roscovan said that three years ago, before the provision concerning the capping of local taxes was abrogated, the taxes could not exceed 5,400 lei in district centers and 16,000 in towns. Now the ceiling was raised to 7,100 lei for villages and district centers and to 18,000 lei for towns. “Given the rise in the prices of products and raw materials and the inflation, the ceiling should be lower than several years ago,” he stated.

Vladimir Mamaliga, who runs a filling station in a village of Nisporeni district, said that his sales are high only during the sowing and reaping seasons. “Such stations in towns sell millions of liters of fuel, while we sell only several thousand liters a year. It’s not right to tax us in a similar way. Now that it is cold, the sales are very low and we earn money enabling us only to survive,” stated the businessman.

Vasile Robu has a phytosanitary products store in Nisporeni town. He considers that the ceiling in district centers should be set depending on the location of the business – a larger amount for the center of the settlement and a lower amount for the peripheral areas. This way many people will be supported to start own businesses and to create workplaces.

Mihail Ciobanu runs a construction materials shop in Nisporeni. He also believes that the ceiling in district centers should be set according to a number of criteria so as to prevent the local authorities from pursuing personal goals.

Head of the Nisporeni local office of the Small Business Association Leon Buza considers the taxes on economic entities should be set depending on sales so as to put all the businessmen in equal conditions.