Three initiatives on economy liberalisation are not sufficient to create competitive investment climate in Moldova - President

On Friday, April 20, President Vladimir Voronin stated in the Parliament that the three initiatives regarding the economy liberalisation, which he had recently launched, despite their revolutionary nature, are not at all sufficient to create a competitive investment climate in Moldova. At the same time, Voronin proposed to make the planned actions irreversible, and suggested to create “a powerful juridical immunity” against any attempts at revising these initiatives in the future. According to the head of state, “the investment climate, about which the experts speak so much, does not really begin from the fiscal tax. The investment climate is not only a series of conditions to attract foreign capital, but also the entire system of relations that make the country attractive, first of all for most of its citizens”. “With a long delay, we however started to move on the way toward European integration. By reducing the number of control bodies to minimum, we ensured the financial discipline, respect for the law and tax obligations. At the same time, we started the consequent liberal reforms, which envisaged the gradual reduction of income tax, registration of the economic entities "at a single office", reducing several-fold the types of activities, for which a licence is required. By applying the well-known "guillotine" we eliminated a large number of normative documents”, Voronin said. As head of state says, at present, “when we reached a certain level of stability, avoided the risks of defaults, energy crises, embargoes on our production, when we are able to make long-term plans for country’s development, when our efforts are also appreciated by our citizens and international financial institutions and donors, it’s time to generally leave behind the past Age. It was a bright one for several persons and, - dark for the majority of population”, Voronin said. According to an initiative, economic entities will not pay the 15% income tax if the profits will be aimed at investments. This initiative has the aim to determine the investors to reinvest their profits in extending and developing their affairs. Another two initiatives aim at the fiscal amnesty and the amnesty of the capital. In the first case it is about the annulment of all the debts, fines and penalties formed at the state budget until January 1, 2007. The distraints levied on the assets of economic entities will be taken away, while the control bodies will be prohibited to verify the previous fiscal periods, but the debts concerning other compartments of the national public budget will have to be paid. The initiative related to the amnesty of the capital includes all forms of capital – from financial means, assets, share holding, to real estate and securities of the economic entities and natural persons. The amnesty will be performed on the basis of an application. Regardless of the sum of the capital declared for amnesty, the state will legalize it against the 5% tax of its value.