Employers’ Confederation disappointed by authorities’ attitude

The National Employers’ Confederation of Moldova (CNPM) expresses its disappointment on the results of negotiations with the State authorities on the fiscal and customs policy for 2013, and doesn’t exclude that additional social-economic issues may arise for this reason, notes Info-Prim Neo, quoting a communique from the Confederation. Although, during the debate on the fiscal and customs policy for 2013, the business community all legislative provisions possible for obtaining better conditions for the development of entrepreneurial activity and for the economy as a whole, both the Government and the Parliament have ignored the arguments set forth. Eventually, the document was adopted in its initial variant, which had been developed by the Ministry of Finance, the communique says. “The fiscal and customs policy, which establishes next year’s “rules of the game” for businesses, has been discussed at the Ministry of Finance, and the Ministry of Labor, Social Protection and Family, also during the meeting of the National Committee for Collective Consultancy and Negotiation, where it was rejected by the two social partners of the Government, i.e. the employers’ associations and labor unions. Our opinions weren’t taken into consideration at the Government meeting, as well. Hope re-surfaced after the meeting with Parliament Speaker Marian Lupu, who proposed us to present our arguments to the Parliamentary committees on Budget and Finance, and Social Protection, Healthcare and Family. Yet the debates had no results; moreover, at the Budget and Finance committee, the CNPM representatives’ access to the meeting was blocked, and only after the media arrived were we allowed to join the meeting, but our opinions haven’t been requested. Although a consensus has not been reached, the document was voted for adoption, during the Parliament’s meeting”, further reads the communique. In the perspective of the adoption of next year’s fiscal and customs policies, the CNPM posted four statements, from the CNPM administration board, on their website. On May 22 the Extraordinary General Assembly of the CNPM took place, during which an official address to the Government was submitted, and which still did not receive a reply; there were press conferences, several statements were published, press articles, interviews. According to the communique, employers’ associations wanted three things: Firstly, cancel the increase from 3 to 5 days in the number of sick leave days paid by the employer. The transfer of budgetary expenses to employers without diminishing social contributions, in CNPM’s opinion, is nothing but double taxation and will affect all businesses. The second remark refers to canceling the VAT on primary agricultural products from 8% to 20%, or the establishment of a mechanism of applying the standard VAT rate, which wouldn’t cause extra expenses and risks to the branch; a mechanism that would be mutually agreed upon with the Government. Additionally, it was opted to keep the VAT on sugar at 8%, a claim that could be given up, if the control on combat against the contraband of this product would be toughened. “Empirical evidence shows that burdening businesses with fiscal and non-fiscal obligations causes reductions in job places, insolvency of businesses and their switch to the underground economy. We plead for a balanced taxation, for all economic agents to be able to contribute to the formation of budgets on all levels, thus increasing the taxation base. Meanwhile, we cannot turn a blind eye to a worrisome situation; the bodies appointed in State control positions strictly adhere to the Fiscal Code and apply sanctions to businesses that function and respect their obligations towards the Budget, but don’t even bother the underground economy businesses. We demand measures as harsh as possible towards those enterprises that operate within our economy’s (informal) gray sector”, adds the communique. If the authorities ignore the business sector’s demands again, they should assume sole and complete responsibility for the potential socio-economic consequences, as well as for protests on branch and enterprise levels, which the Confederation could not anticipate, says the communique published by the National Employers’ Confederation of Moldova.