Ministry of Economy and Commerce launched hotline for patent holders

Patent holders will be able to find detailed information on the amendments to the Law on business patent, registration of individual enterprises and fiscal relief for this category of businessmen, calling on (37322) 23-70-58, opened at the Ministry of Economy and Commerce (MEC). MEC launched the hot line in order to ensure patent holders with accurate information concerning the provisions of the law and the difficulties businessmen face. Specialists of the Ministry will provide consultation so that patent holders continue their business in accordance with the legislation. Representatives of the small business disagree with the prohibition of trade on the basis of business patents. They accuse the government of favouring “business sharks”. Businessmen also assert that by this type of actions, the state will liquidate thousands of workplaces and will make the population to leave the country. Deputy Minister of Economy and Commerce, Viorel Melnic, stated earlier that the Law on business patent was approved in 1998 as a special measure for that period, in order to give the poor categories the opportunity to practice trade and ensure thus means for existing. At present, though, the unauthorised trade accounts for 43.5% from the total volume of the trade transactions, and the real tax paid by business patent holders is below 0.2% from the potential sum. 36,600 patents have been issued on January 1, 60% of which addressed trade. Officials estimate that the state incurs damages of up to MDL 2 bln, this being the cause why it cannot support employees in the budgetary sphere. The Government proposes that the individuals who ceased their patented activity follow a simplified and free of charge procedure of registration as individual enterprise. At the same time, the individual and small-sized enterprise are also regulated by the art no 49-1 of the Fiscal Code, stipulating that they are exempted under certain conditions from the income tax. Parliament amended on July 7, 2006 the Law on the business patent, 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 with goods subject to excises 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; starting January 1, 2008 – the trade with food. 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. Retail trade on the basis of the patent with water, bottled in unauthorized places, will also be prohibited. The Small Business Association (AMB) will organize an ample protest manifestation against the decision to withdraw the business patent on Thursday, December 21, in the square of the Opera House. 3,000 patent holders from all over Moldova are expected to attend the event.