The People’s Party of the Republic of Moldova (PPRM) said the draft 2014 fiscal policy poses a threat to the financial security of the state. According to the PPRM, the bill is evidently electoral in character, as the draft budget, while its adoption is overdue.
In a news conference at IPN, managing co-chairman of the PPRM Alexandru Oleinic said the state budget and fiscal policy bills will not ensure the recovery of the national economy based on a new economic development model as they do not contain measures to attract remittances to the economy. There are stipulated no mechanisms for supporting small producers and methods for stimulating exports.
Alexandru Oleinic stated that instead of suggesting solutions for removing the constraints on businesses, the draft fiscal policy toughens up tax discipline in customs administration. This fact will not contribute to larger investment flows in Moldova. As Moldova needs a new development model, based on investments, new technology and exports, a new concept of predictable fiscal policies is needed, which would be adopted for 3-5 years.
The PPRM pleads for the introduction of a common tax of 10% for private individuals and legal entities and of a zero tax on incomes reinvested in registered capital. In order to support the farmers, the PPRM suggests imposing a common tax in agriculture of 1.8 lei per hectare. A zero tax should be put on the importation of equipment and advanced technology so as to support the national producers and exports.
The party considers that the people who have incomes lower than the minimum subsistence level should be exempted from taxes, while the micro and agricultural companies with at least five employees should be exempted from paying the income tax for a period of three years.
In order to legalize salaries, the PPRM proposes ensuring the payment of salaries through bank cards. The state budget expenditure can be rationalized by implementing the electronic register of payers and recipients of state guaranteed social assistance, through the agency of the electronic register of recipients of unemployment benefit and social welfare. For the purpose, the party recommends fully shifting to e-Government.
