Tiraspol, 1 February. /Novosti Pridnestrovya/. Owing to unstable demand in the European markets, garment factory Vestra will not be able to retain its production volumes at the level of 2014−2015. The factory's production is 96% dependent on raw materials supplied by foreign customers, who do not venture to sign new contracts in the context of economic crisis.
In this connection, the government has backed the initiative of the Ministry of Economic Development to extend the government's assistance of the factory to 2016 by lowering its income tax liabilities by 50%.
It should be noted that the enterprise was already provided with assistance in the period from May to December 2015. The aggregate amount of the government's support was 633,000 roubles. As a result, Vestra retained its production volumes in volume terms, but was down 18% in value terms.
Based on its 2015 results, the factory has requested the ministry to extend the assistance and drawn support. The ministry has analysed the factory's performance and decided to extend the governmental assistance agreement to the end of 2016. According to the minister of economic development, Alevtina Slinchenko, the total amount of the assistance is estimated at 850,000 roubles.
At the same time, the minister has noted that in 2015 Vestra fulfilled all terms of the agreement except for preserving the payroll fund. However, this did not refer to wage cuts, but the reduction in incentive payment costs. Nevertheless, in the event the factory does not comply with agreement provisions, it undertakes to reimburse the whole amount of the assistance provided.
Taking the enterprise's difficult economic situation into account, the government has proposed a compromise.
«We have calculated the amount of tax payments the budget fell short of due to the payroll reduction and are proposing that Vestra pay it in stages in 2016," clarified Alevtina Slinchenko.
According to the ministry, this sum will amount to 280,000 roubles.
«We are proposing to draw up a reimbursement schedule and include it in the governmental assistance agreement for this year," said the minister.
