Tiraspol, 28 April. /Novosti Pridnestrovya/. The government had already presented the concept's section on education and social security. And now the minister of economic development, Sergey Obolonik, has presented a section on macroeconomic analysis and tax policy analysis for 15 years.
«We should determine and implement the strategy that will increase economic activity in our country, attract investors and bring the economy into a positive zone," the government's press service cites Sergey Obolonik as saying.
The report notes that since 2003 the country has seen a high rate of economic growth. Despite state assistance, the impact of the 2008−09 financial crisis has not been overcome. Since 2009 Pridnestrovian exports have amounted to about 60−70% of GDP
The analysis has mapped the PMR's tax burden compared to that of CIS countries and the EU. In 2015, this rate was about 34% of GDP. In the OECD countries, the tax burden amounts to nearly 35%; in Russia, it is 24% of GDP, excluding the oil and gas revenues; in Kazakhstan, it is 26% of GDP; and in Armenia, it is 25%.
Experts note that given the degree of risks, this level of tax burden makes the Pridnestrovian economy uncompetitive in terms of attracting investment.
The analysis has shown the need to reduce taxes on business. Taxes on business income should be reduced through sectoral approaches.
«Changes in tax pressure should enable our enterprises to continue developing, create jobs, implement technical and mechanical development plans," said the minister.
As Sergey Obolonik underscored, the reduced tax burden will result in a budget deficit. Among the measures aimed to minimise budget losses are to stimulate economic growth and widen the taxable base, to reduce state spending, which amounts to 60% of GDP today and which is unacceptable even for some developed countries.
In addition, measures should be taken to reduce the share of the shadow economy. To achieve this, the government believes, it is necessary to optimise the tax burden while improving the quality of tax administration.
«The tax burden on business must be adequate and, on the one hand, should contribute to the development of the enterprise and, on the other hand, ensure budget revenues. The state, at the same time, must have efficient tax control instruments to prevent tax evasion," said the prime minister.
Work on the concept of tax and budget policy is continuing with Russian experts actively contributing to the drafting of this document.
