Foreign Investors Association calls State to lift restrictions for buying agricultural lands

The Foreign Investors Association (FIA) of Moldova requests the State to lift restrictions for buying agricultural lands by foreign companies. Instead, FIA proposes concrete investment commitments on the part of investors and guarantees for completing the investment programme. Such a proposal is included in the second issue of the White Book, launched by FIA on March 16. The White Book contains recommendations on investment climate improvement for the Moldovan decision makers. The present edition comes with suggestions resulted from concrete situations that affect the daily activity of the companies, which can be improved operating concrete amendments to the present legislation. FIA executive director Dinu Armasu stated during the White Book’s launching festivity that there are also dissatisfactions related to the problem of refunding VAT, which at present is allowed only for eight categories of VAT payers, the rest benefiting just from the possibility of shifting the respective sums for the next period. Today, when an investor makes up his mind to investment in Moldova, in the end their value differs from that stipulated in the business plan. For instance, if an investor decides to create an enterprise with a budget of USD 20 mln, the real value of expenses for constructions will by only USD 16 mln, while USD 4 mln will be deposited for paying VAT. This fact contravenes the international practice, according to which VAT is returned in strictly established terms. The White Book also contains recommendations regarding the administrative burden, the state’s non-participation in the activity of partnership, addressesthe problem related to the annulment of private debts towards the state budget, which generates a disloyal competition; consider proposals referring to the improvement of the labour legislation. The Foreign Investors Association brings together the most important 16 foreign investors in Moldova, whose total investments exceed USD 500 mln, or more of 50% of the share of foreign direct investments, offering jobs for over 8,000 people.