Alexander Martynov: 'Society expects immediate results but, unfortunately, this is not the case'

09/18/17 20:30

Alexander Martynov: 'Society expects immediate results but, unfortunately, this is not the case'

The prime minister told journalists about the outcome of the Pridnestrovian delegation's visit to Moscow
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Tiraspol, 18 September. /Novosti Pridnestrovya/. Last week the Pridnestrovian delegation visited Moscow. Delegation members took part in numerous meetings in Russia's State Duma, government and presidential admonistration. A wide range of questions was discussed: humanitarian projects, attraction of investment, expert support.

According to the head of the government, Alrexander Martynov, it is on the latter two areas that Pridnestrovie is especailly closely cooperating with Russian experts from audit companies and think tanks.

"Systematic work is being conducted.I understand that society expects immediate results but, unfortunately, this is not the case because the volume of the problems faced by the Pridnestrovian economy is very great and requires s certain sequence of measures to resolve them. Now the Russian [audit] companies are conducting or may be finishing the analysis of problems in the Pridnestrovian economy. It was initiated by Pridnestrovie and after it is finished, I believe, Russia will launch certain mechanisms for support and more active assistance," explained Martynov.

He recalled that initial meetings between the new leadership of Pridnestrovie and Russian experts had been of a certain tone. And Moscow completely supported the current course for reforms and renewal.

"When we first arrived in Moscow after the elections, the principled committment of the government was that we were not going to Moscow to ask for money but to propose a plan for reforms that would reinvigorate the Pridnestrovian economy. And for the period of these reforms, we asked for financial support. This is quite normal for any developing state. And this approach, coupled with Russian audit, was, of course, backed by Russia," noted Martynov.

Speaking about investment, MArtynov recalled that the latest estimates showed that the modernisation of the Pridnestrovian economy would require $50-70 million. It was that amount that could sustain them and significantly increase exports, and thus replenish budget revenues.

"The relevant proposals, business plans of enterprises have been submitted to Dmitry Rogozin and, as far as we know, are now being analysed, after which decisions will be made about giving up loans to these enterprises," said Martynov, noting that the country was actively modernising its investment legislation.

Investors need clear guarantees and preferential traditions to attract financiaql flows to the country. The prime minister recalled that the government's draft laws provided for the former and the latter with many key points being recorded in laws or specail investment agreements. 

"The scale of investment promotion, investment preferences should be unprecedented as Pridnestrovie is an unrecognised state, which bears certain risks to investors. The government is therefore offers an investement contract to the investor which will provide all guarantees for the investor, all tax benefits. We offer a fairly wide range of tax benefits, including exemption from corporation income taxes for the period of 8-10 years, that is, we propose them to pay only salary taxes — income and social," the prime minister explained.  

These measures are complex. Simultaneously with the reduction of the tax burden in the real sector of the economy, approaches to tax audits will be changed These are the very risk degrees on which the frequency of tax audits will depend. All this, according to the prime minister, will help to reduce the share of the shadow economy.

 

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