Patent-based trade was a conception suitable for the 1990s, when the people didn’t have jobs. In the conditions of a modern economy, this type of trade is no longer appropriate. In his connection, the Ministry of Economy proposed a draft law that regulates independent commercial activities that will replace patent-based trade starting with 2017. Minister of Economy Octavian Calmac told about this bill in an interview for IPN.

“We are yet dissatisfied with the paten-based trade. We see that this instrument was used by many traders to legalize products imported illegally or at a much lower value declared at customs posts. We submitted a proposal for patent holders – on the one hand, we extend the access of these individual entrepreneurs to more types of activity; on the other hand, we ensure correctness in taxing these. The common tax we suggest is of only 1% of the revenues,” said the official.

These will be able to import goods that they will have to declare and the turnover was raised from 300,000 to 600,000 lei. When the level of 600,000 lei is passed, the payment of VAT becomes mandatory. “This enables them to interact with large business entities. The obligation to have cash register is the only inconvenience, but the price of this machine will be deducted from the taxes that are to be paid. In other words, the state will subsidize the purchase of the cash register,” stated the minister of economy.

Asked why the patent holders oppose and protest then, the minister presumed that their sales are much larger than the legal ceilings. “The initial patent conception didn’t envision the legalization of a distribution network. The conception was implemented in the 1990s, when the economy was in a deep crisis and there was a shortage of jobs. It was a short-term solution,” said Octavian Calmac.

He noted that using the patent for 20 years was enough for obtaining an appropriate business culture, on the one hand, and for shifting to civilized trade to respect all the rights of consumers, on the other hand.

The minister said the first elements of the new conception were planned in the medium-term expenditure framework that was accepted by the Government in September. There are a number of elements related to the individual entrepreneurial activity suggested by the Ministry of Economy in the context of the fiscal-budgetary policy. The Government will soon approve it and Parliament will then adopt it. The objective is to start implementing it on January 1, 2017 as the patent-based trade will be banned from then. Patent will remain for particular types of crafts only.