Employers warn about danger of development of underground economy

Representatives of the National Confederation of Employers of Moldova expressed their disagreement with the amendments to the legislation approved by the Government, whereby the employers will be obliged to pay sickness benefits to employees for the second, third and fourth day of the sick leave. According to the employers, this measure generates dangers that will lead to the development of the underground economy, Info-Prim Neo reports. Until now the employer paid the sickness benefit only for the second day of sick leave, while starting with the third day the payments were made from the social insurance funds. The Confederation’s chairman Leonid Cerescu said the state must create attractive conditions for the economic activity so that the number of workplaces is increased and money for the given purpose is available in all the budgets of the state. ‘The Government Decision was adopted by fully ignoring the principles of the social partnership and the social partners from whose taxes the government officials receive salaries. This decision adds one more tax to the existing ones and the economic entities are thus prevented from developing,” Leonid Cerescu said in a news conference. Eugen Roscovanu, deputy chairman of the National Confederation of Employers, considers the National Social Insurance House should better manage their incomes so as to prevent the maltreatment and discrimination of the economic entities. “A tax is paid if three conditions are met: the tax must be acceptable, penalties must be imposed if it is not paid and this tax must be universal, i.e paid by everyone. This last condition is a problematic one. We speak about the underground economy here,” said Eugen Roscovanu. He also said that when a tax is excessively high, ways to avoid paying it are being looked for. According to him, 2012 should be devoted to the fight against the underground economy so as to hold accountable those who do not pay taxes. The National Confederation of Employers of Moldova is a nongovernmental, independent, noncommercial and apolitical organization.