Most important Economy & Business news by IPN
● MONDAY, August 12
Natalia Gavrilița: I shall do my best to generate more fair competition
Minister of Finance Natalia Gavrilița understands the dissatisfaction of HoReCa sector representatives who pay their contributions and who are unable to compete with businesses that employ tax evasion. "The right to protest is essential in a democracy", said Natalia Gavrilița about the HoReCa initiative to protest today, August 12, against the VAT rate increase from 10% to 20% for this sector. "I shall do my best to generate more fair competition and to bring inside the legal framework those operating in the black economy. We are already working on a series of measures to encourage legal businesses - ranging from tax receipts lotteries, to intensive inspections at places where tax evasion happens," the finance minister wrote on her Facebook page.
Protest outside Government: representatives of two transport companies demand fair justice
The representatives of the transport companies "Ednateric Trans" and "Transeric Tur" organized a protest action on Monday outside the Government building. They asked for justice in the criminal cases targeting the companies' directors, alleging that the criminal cases were manufactured at the request of a competing transport operator. Many coaches were parked in the Great National Assembly Square.
Money circulation in lei between participants in payment system will be more fluid
Non-bank payment services providers, as well as bankers, will have access to the Automated Interbank Payment System (AIPS). As a result, payment services providers will operate in an equal competitive environment and the circulation of money between participants in the payment system in lei will be more fluid. This comes after the National Bank of Moldova has approved a series of decisions in the field of cashless payment services.
Meal vouchers operators want fiscal facilities to persist
The French companies Edenred and UP Moldova point out the entailed risks in the cancellation of tax facilities of meal vouchers to the government, the Parliament and the President’s Office. According to the operators' press release, "the consequences of such a decision would be bad for all the actors involved in the process: employees, companies, public authorities and traders".
● TUESDAY, August 13
Georgeta Mincu: Winemakers should have their own export strategy
The wine production and grape growing sector cannot be neglected, because, thanks to exports, it brings the most currency into Moldova, yet each producer must have its own export strategy. The statement was expressed by the Minister of Agriculture, Regional Development and Environment, Georgeta Mincu at a meeting with winemakers and grape producers. "We have a surplus of production on the market and there's no one to consume it. We have subsidizing tools to help you develop an export strategy so that we, in tandem with the foreign ministry and with economic partners, make our products as visible as possible on the market”, said the Minister of Agriculture.
Economist: Moldovan exports registered 0% growth last year
Last year, exports of the Republic of Moldova stagnated at the level of $ 2750 million, the registered growth being of 0%, observes Veaceslav Ioniță. The IDIS economist wrote in a personal blog post that, after the 2014 crisis, the export growth was ensured by 5 main branches, IPN reports.
● WEDNESDAY, August 14
Sugar producers affected by imports, including through smuggling
Sugar production is relatively small in Moldova, given the existence of only two major producers on the market. Nevertheless, producers say that in recent years they are losing ground on the domestic market, but also on the external market in terms of price competitiveness. They consider it necessary to reduce or stop the import of sugar, but also to amend the Law on the entrepreneurial patent. The statements were made during a meeting between representatives of sugar producers and those of the Ministry of Agriculture, Regional Development and Environment (MADRM), IPN reports.
Stricter conditions for selling alcohol
Conditions for ethyl alcohol circulation are to be tightened. In particular, the Ministry of Agriculture, Regional Development and Environment has proposed for public consultations a new draft methodology on how to submit the notification concerning ethyl alcohol merchandising, IPN reports. The rules will apply in cases when economic operators request permission to buy ethyl alcohol for purposes other than alcohol production. The application will specify the name of the entity, the registration number (IDNO), the justified quantity of the requested ethyl alcohol.
Transport authorizations for irregular flights to Belarus are excluded
The Government approved the protocol for amending and supplementing the agreement with Belarus on international car traffic (of April 9, 1994). The protocol stipulates that irregular transport of persons and goods under bilateral and transit regime shall be carried out without transport authorizations, IPN reports. According to MEI, the protocol will contribute to the development of road transport, to the promotion of goods’ exchange, at the same time facilitating the trips of people from both states.
● Thursday, August 15
Fewer apples to export this year
The hail storms which occurred in May and in June affected the quality of apples. This year, a smaller quantity of apples is intended for export. Asked by IPN, Iurie Fală, executive director of the Moldova Fruct Association, said that although the harvest is larger than last year’s, about 670 thousand tonnes of apples, from a quality standpoint, are worse than last year's output.
Amendments to 2019 state budget adopted in final reading
Parliament adopted in the final reading the draft law on the amendment of the State Budget Law for the current year. The draft envisages a decrease in revenues by 1,492.0 million MDL and in expenses by 1,327.4 million MDL. Hence, the deficit increases by 164.6 million MDL, IPN reports. The revenues of 2019 state budget will constitute 40 633 531,5 thousand MDL, the expenses - 46 336 817.6 thousand MDL, with a deficit in the amount of 5 703 286.1 thousand MDL..
STS launches the "Be honest - ask for the receipt" campaign
The State Tax Service urges citizens to request VAT receipts and to be able to identify distinctive elements of a true VAT receipt. In this regard, the "Be honest - ask for the receipt" campaign was launched. According to a STS statement, a public service announcement video will be published to encourage citizens not to be indifferent towards tax evasion and to ask for the receipt. The video clip shows what distinguishes a true receipt from an internal evidence note”, the press release states.
BNM to grant emergency loans only to creditworthy and viable banks
The National Bank of Moldova (BNM) will be able to provide liquidity assistance in an emergency situation - emergency loans - only to a creditworthy and viable bank. Parliament approved, in the first and second reading, amendments to the legislation to define the concept of "liquidity assistance in emergency situations". Thus, the provisions which allowed granting of liquidity assistance to three insolvent commercial banks were cancelled, IPN reports. Also, they have been excluded from the list of eligible assets accepted by the National Bank of Moldova as collateral when granting loans to banks for simple bills of exchange and securities, issued in respect of goods or commodities, as they are not commonly used on the domestic market.
● FRIDAY, August 16
Dozens of loaded trucks await export permits for Russia
Carriers are concerned about the small number of export permits for the Russian Federation. Although it has been discussed with the Russian side about increasing this quota up to 20 thousand authorizations, there have been speculations that only a thousand authorizations will be issued. The situation becomes even more complicated when only two hundred authorizations remain in stock, Vladimir Florea, chair of the Union of Transporters and Roads Workers Employers’ Association told IPN.
The export authorizations for the Russian Federation have been introduced three years ago, when the export procedure without authorizations was bilaterally cancelled.
Amendments to budgetary-fiscal and customs policy adopted by Parliament
The amendments to the budgetary-fiscal and customs policy, proposed by the Ministry of Finance, have been adopted by the Parliament in two readings, IPN reports. The draft stipulates that only individuals with incomes under 360 thousand lei per year shall benefit from personal exemption (24 thousand lei this year). With a view to simplifying the tax administration, an income tax in the amount of 12% shall be withheld.
Electricity rates increase
The rate for the electricity supplied to domestic consumers by Gas Natural Fenosa has been increased by 9.6 bani, and in the case of the company Furnizare Nord - by 31.6 bani. The decision was adopted today, August 16, by the Managing Board of the National Energy Regulatory Agency, IPN reports. As a result, the rate for the electricity supply by Gas Natural Fenosa will constitute 1.89 lei / kWh for domestic consumers, as compared to the current rate of 1.79 lei / kWh.
In the case of the company Furnizare Nord, the approved rate is of 2.23 lei / kWh, as compared to the current rate of 1.91 lei / kWh
Moldova named among top 20 wine producing countries
The abundant 2018-2019 grape harvest put Moldova on a list of the top 20 wine producing countries, according to a report presented at the 42nd World Congress of Vine and Wine OIV. According to the report, Moldova ranks 19th in the world, with about 2 million hectoliters of wine; and 13th by the total surface area of vineyards, which cover 150,000 hectares. By consumption of wine per capita, estimated at 18 liters in the 2018-2019 season, Moldova ranked 17th.
The report also reveals that the amount of wine produced globally was one of the amplest in the last 18 years, with 292 million hectoliters produced.
Saturday, August 17
Honey Fair opens in Chisinau
The fifteenth edition of the Honey Fair is organized between August 16-19, in the square of the Nativity Metropolitan Cathedral. On the first day of the fair, almost 20 beekeepers from different districts exhibited their bee products, IPN reports. There are over seven thousand beekeepers in Moldova. Last year more than four thousand tons of honey have been exported.
About half of passenger transport operators work on the black market, employer association
Over the course of the last three years, virtually no buses have been imported, while some economic agents working on domestic routes have accumulated debts of over 18 million lei owed to gas stations. An unsolved issue since 2012 is the stagnation of fares for commuters on urban and suburban routes, which led to the creation of the passenger transport shadow economy. Today, roughly 50% of the transport operators work on the black market - they do not have authorizations, they overcharge passengers and they do not use bus terminals, said Vladimir Florea, president of the Employers Association of Transport Operators and Roads. Estimates show that lost revenue to the budget is 300 million lei.
