Tiraspol, 18 March. /Novosti Pridnestrovya/. The Chamber of Industry and Commerce (CIC) held a round table discussion on VAT introduction. The meeting was attended by representatives of Germany's consulting company Berlin Economics, representatives of Pridnestrovian medium and large businesses, MPs, economists.
Dr Hans-Georg Petersen and consultant Jorg Radeke presented a report titled «Is the value-added tax appropriate for Pridnestrovie? Tasks and options for enterprises». They spoke about the results of VAT introduction in different countries and pointed out possible implications for corporate economics and the national budget, the CIC's press service reports.
According to the foreign experts, the introduction of VAT may compensate for the losses which the Pridnestovan budget has incurred due to a reduction in import duty receipts and ensure full-fledged accession to the international community extensively applying this mechanism of taxation.
The Berlin Economics specialists suggest a two-stage process of VAT introduction, when at the first stage the new taxation system will apply to large businesses and only then will extend to other companies. According to the experts' estimates, the adoption of VAT may take 18 months in Pridnestrovie.
The participants also discussed possible implications of VAT introduction for enterprises. The head of the department of leasing and consulting of the CIC, Valentina Prokova, outlined in her report potential problems the adoption of the new taxation system may cause.
Among these problems are a high probability of collisions between partners employing the VAT system and those who do not, tax administration expenditures, and high corruption risks, which will require extra measures to minimise them.
The participants agreed to specify questions and draft proposals for optimising the process of VAT introduction to the taxation system of Pridnestrovie.
