The underground economy is one of the main threats to the economic security of Moldova, considers the Party “Platform Dignity and Truth” (PPPDA). According to the party, national and foreign experts estimated that the black economy accounts for 50% to 70% of the Gross Domestic Product, which means that about 70-90 billion lei circulates annually in the underground economy. If this economic segment is legalized, the national public budget will annually collect at least 30 billion lei as taxes and contributions, which is almost one more state budget, IPN reports, quoting a press statement of the PPPDA.

“The “Platform Dignity and Truth”, beyond the desideratum to remove the current state management system, comes up with a set of solutions for comprehensively combating the underground economy, which combines stimuli for the legal business sector, the country’s de-offshorization and harsh punishment of tax evasion,” PPPDA leader Andrei Nastase said in a news conference, reading the statement.

Among the proposals of the PPPDA are to sign and implement an agreement of cooperation with a number of entrepreneurial associations, to give the Collective Negotiations Commissions legislative status and to mandatorily consult the candidates for deputy minister with the relevant associations. The party’s members consider it is important to include representatives of associations in all the bodies that manage international projects under ministries.

The PPPDA believes the activity of offshore firms in the strategic areas of the country’s economy, such as banking sector, insurance and others, should be banned and a special tax on transactions with offshore companies should be introduced.

The party suggests decreasing the state mandatory social insurance contributions by 6 % and reducing these by another 3% during the next two years and diminishing the mandatory health insurance premiums by 2% and not taxing incomes that ensure minimum subsistence. The income tax should be reduced to 10% and the penalties for illegal economic activities, especially for paying salaries “in envelope”, should be made harsher, while all the resources accumulated as a result should be used to make social payments.