Small business representatives accuse government party of supporting “business sharks”

Small business representatives accuse the leadership of Moldova of fighting against small business in favour of “business sharks”. They warn the government party that they will lose their voters if they will prohibit trade on the basis of the business patent. On Friday, December 1, within the frameworks of a meeting organized by the leadership of the ministries of Economy and Finance, which tackled the issue of gradual exclusion of some types of activities allowed by the business patent, the owners of the marketplaces declared that the tradesmen are displeased with this situation. According to them, it would have been correct to exclude from the list some activities, such as selling of furniture or construction materials, but not the small merchandisers who have low incomes and will not be able to shift to another forms of entrepreneurship. They say that by such actions will liquidate thousands of workplaces and will determine the population to continue to leave abroad. The deputy-minister of Economy and Commerce, Viorel Melnic states that the Law on the business patent was approved in 1998 as an exceptional measure for that period in order to give the possibility to the poor category of population to earn money. At present, of the total volume of commercial operations, 43.5% are held by unorganized commerce, and the real tax paid by the holders of the patent is less than 0.2% of the sum they have to pay to the budget. On January 1, 2006, 36.6 patents were issued, 60% of them for trade. The authorities estimate that the losses the state incurred exceeded MDL 2 bln, and in light of this situation the budgetary employees can not be properly supported. According to Melnic, the WTO membership of Moldova is not allowing commercial activity on the basis of the business patent. The Government suggests to individual entities that halted their activity based on the business patent to use an easy procedure which allows registering as individual entrepreneurs. At the same time, the individual and small enterprises are subject to the article 49 of the Fiscal Code, which stipulates they are exempted in certain cases case of the income tax. In order to liquidate black commerce, the Parliament amended on July 7, 2006 the Law on the business activity, by gradually reducing the list of activities allowed to be performed on its basis. Starting January 1, 2006 the trade on the basis of patent for goods to which excises are applied is prohibited, and starting August it is not allowed to sell electronic devices and appliances with a settled guarantee term. Starting January 1, 2007, the services related to the transport of goods and passengers (up to 7 persons), cultivation and selling of flowers, selling of construction materials, furniture, and household goods will be excluded from this list. Also the retail trade in booths and other spaces up to 12 square meters will be prohibited. Starting January 1, 2009, the trade with all types of products at booths, desks and cars in authorized marketplaces will be also prohibited.