PAS MPs suggest amendments to budgetary-fiscal policy

The MPs of the Party of Action and Solidarity (PAS) proposed a number of amendments to the state budget and budgetary-fiscal policy for 2021 that were given a first reading. Among these is the introduction of a zero tax on reinvested profit for micro-enterprises with up to nine employees. According to the MPs, such a measure will help the most vulnerable business entities and will stimulate employers to keep the employee and to invest in business, IPN reports.

In a news conference, MP Radu Marian said that almost half of the enterprises in the crisis period reported twice lower sales revenue. “I want everyone to understand that each saved business means more intense consumption, an economy that remains afloat, more money collected into the budget for schools, roads or pensions. This measure will benefit 50,000 companies, active enterprises. The costs for the state budget are not so high – approximately 15-20 million lei, while the benefits for these enterprises are very important,” explained the MP.

Another proposal is to eliminate the delay penalties on the payment of taxes for 2020-2021, if the debts are rescheduled. “In this period of pandemic crisis, especially those from the hospitality industry have found it difficult to honor their fiscal obligations, especially in paying social insurance contributions. In the case of these delays, the authorities issue withdrawal orders and the debt is automatically extracted from the company’s account. Such an action on the part of the state seems much harsher in time of a pandemic,” said Radu Marian.

The PAS parliamentary group also suggests increasing the loan guarantee fund to 2 billion lei. It is an initiative that is broadly used in the European states and is an optimal solution for providing the enterprises with liquidity. The MPs propose introducing the VAT rate of 12% on transactions in electronic trade.

“Regrettably, electronic trade in Moldova is underdeveloped. It represents approximately 1% of the sales. In the developed countries, electronic trade in 2020 constituted 70-80% of the total. It’s clear that we will not reach such a figure soon, but it is important to understand that there is growth potential. Primarily during the pandemic, when the people try to avoid going out, such a measure will stimulate digital economy,” noted the MP.

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