The banning of the entrepreneur’s patent and the switchover to individual activity will exclude the phenomenon of unfair competition and will enable to legalize the incomes of all traders, said secretary of state of the Ministry of Economic Development and Digitization Viorel Garaz. According to him, the parent holders who come to protests in central Chisinau are afraid of changes, but the Government will help them to overcome the period of transition by offering them financial support, IPN reports.
Representatives of the Government assured that the patent holders will get up to 10,000 lei in support from the state for equipping the workplace and purchasing a cash register. The money will be provided through the Agency for Entrepreneurship Development (ODA).
“It is fear of change. Furthermore, the panic is fueled by those who are afraid to legalize their incomes as they will have to declare their real incomes. We can offer them better conditions than the current ones. Each person involved in an economic activity must obey the legal framework. The Republic of Moldova, as other states, pays pensions and scholarships and offers better living conditions exclusively based on the taxes paid by the citizens of the country. The higher is the number of registered economic entities the lower is the fiscal burden. The current law provides that the annual sales must not exceed 300,000 lei. In discussions with patent holders, these said that they do not go above this sum. The presence of a cash register is the only difference between patent and individual activity,” Viorel Garaz stated in the program “Common Objective” on TVR Moldova channel.
Economic experts support the Government’s decision to ban entrepreneurial activities based on patent, saying the exclusion of this form of trade will favor the entrepreneurs, the state and consumers as the issuing of a sales slip will become mandatory.
“The entrepreneur’s patent was a solution at the end of the 1990s, when the national economy was switching over to market economy. Then the authorities identified this temporary solution for legalizing business based on the entrepreneur’s patent. This way, particular revenues were collected to the state budget and those who wanted to trade based on this simplest form could do it. The alternative offered now is much more beneficial to those who run businesses and to the whole society as the receipt that protects the consumer will be issued and unfair competition will be eliminated as the individual enterprises or LTDs are now disadvantaged against those who trade based on patent,” said economic expert Grigore Vieru.
As from July 1, trade based on patent will be banned. The persons who retail at kiosks, stalls and through pushcarts need to switch over to independent activity. They must have a cash register and will pay a tax of 1% of their incomes.
