New enterprises will cut personnel or move to the underground economy, CNPM

Leonid Cerescu, head of the National Confederation of Employers in Moldova (CNPM), believes that after the constraints of the 2013 budgetary-fiscal policy are adopted, a part of the younger enterprises, those who did not form completely, will either reduce personnel or move into the gray area of our economy. The CNPM chair told Info-Prim Neo that one way or the other these constraints will negatively affect businesses and the national economy, as a whole. “I assume the Gross Domestic Product will not grow, that a part of the businesses, will either close or go into underground economics”, mentioned Leonid Cerescu. He termed the budgetary-fiscal and customs policies of 2013, recently adopted by the Parliament, as the “third black stone” the current administration threw in for business sector. “The first black stone fell when the Filat Government modified the legislation for 2011, switching towards the employer and employee the pay for one day of sickness leave, in the hope to diminish the great expenses of that particular fund from the Social State Insurance Budget. All proposals from the Employers’ association, which may have had a similar effect, but wouldn’t have burdened employers and employees, were ignored”, mentioned the chair of the confederation. The second “black stone” fell in 2012. Among the “novelties” implemented by the Government are: re-introducing the 12% income tax for a part of the enterprises; 6% tax on paying dividends; employers’ duty to pay three days of illness leave of the employee; additional authority to audit and inspection bodies for applying sanctions; Added Value Tax for instruction; harsher sanctions for breaches of the fiscal legislation, etc.”, Leonid Cerescu reminded. According to him, the third “black stone” to the business’ basket is the budgetary-fiscal and customs policies for 2013, which include: the increase of paid illness leave days from 3 to 5, i.e. a doubling of the tax; 20% VAT for primary agricultural products; increase in sugar VAT from 8% to 20%, an action that will negatively influence farmers and workers employed in sugar beet cultivation, by decreasing cultivated areas, and consequently, available jobs. A logical finale is salary cuts and a decrease of the Budget.” “All of the intentions of employers to meet with the decision-makers, all of the press conferences, written declarations and articles, had no effect; we, as the saying goes, nailed Jell-O to the wall”. In this context, the main question asked by the business sector to the policy makers would be as follows: “Do they want economic growth or state bankruptcy?” asks himself Leonid Cerescu.