Tiraspol, 14 January. /Novosti Pridnestrovya/. The Supreme Council's committee on economic policy, budget and finance has discussed amendments to the law On corporate tax. This legislation was submitted by the president and provides for the exemption of a number of industrial enterprises from the so-called 'tax on losses' (recalculation of the taxable base with 5% profitability ratio) following the results of 2015.
As was noted at the committee's meeting, the necessity to approve the submitted amendments has been caused by the decreased profitability of Pridnestrovian enterprises, negative economic conditions and the depreciation of national currencies in the countries trading with Pridnestrovie, which has affected the price competitiveness of Pridnestrovian goods.
Committee members have supported the president's legislation.
«The president's legislation is similar to the initiative submitted in March 2015. We agree with its concept," said the deputy chair of the committee, Alexander Korshunov, in an interview with journalists.
At the same time MPs propose to extend the law's provisions to 2016 «so that our manufacturers realise the strategy of the state's support in the short term». In addition, a discussion is under way as to if service entities should be included in the list alongside industrial enterprises whose revenue from the sale of produced goods exceeds 70%.
However, according to a deputy finance minister, Alla Skibenko, expanding the list of economic entities exempt from 'tax on losses' is premature.
«It is premature today, taking the considerable budget deficit into account. There are a lot of expenditures which cannot be covered with revenues, and it is counterproductive to expand a list of budget shortfalls," says Alla Skibenko.
The draft law providing for amendments to the law On corporate tax will be discussed again at the next meeting of the committee on economic policy, budget and finance on Monday, 18 January. However, even today MPs are sure that the parliament will pass the initiative abolishing the 'tax on losses' during the next session.
