Government approves investment law

08/30/17 15:55

Government approves investment law

The document aims to improve the investment climate and encourage the attraction of both domestic and foreign investment in our economy
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Tiraspol, 30 August. /Novosti Pridnestrovya/. How to improve the investment environment in Pridnestrovie and attract potential investors — some six months ago the government began to work on this issue. Today, the result of the joint work of the relevant ministry and the business community, a law on investing activities in the PMR, was presented by the minister of economic development, Sergey Obolonik during a government meeting.

According to Obolonik, in addition to improving the investment climate and stimulating domestic and foreign investment in the country's economy, the law guarantees the protection of investors' rights, defines measures of state support for investment, as well as the procedure for the settlement of disputes involving investors.

A significant complement to existing investment legislation will be the establishment of a relationship between the state and the investor through a contract under which additional incentive measures may be provided to the investor, and in some cases individual guarantees and preferences. This includes a reduction in the taxable base, the establishment of preferential rates for a single social tax, land-payment benefits, the provision of state-owned grants, the application of a stabilization regime in the modification of legislation.

«The law also provides for a regulation that allows for the investigation of investor guarantees in the courts of law — in Russia — and a measure which will allow the decisions of courts on investment agreements to be immediately implemented in Pridnestrovie. Thus, the main risk to the investor, in our view, will be significantly reduced, which would improve the investment climate in the PMR," underscored Obolonik.

According to prime minister Alexander Martynov, the draft law on investing activities in the PMR is one of the most important items on the government's agenda. The government will have the right to enter into individual investment agreements with investors. This mechanism is actively applied in developed countries, for example, in Kazakhstan.

«We talked much to potential investors, economic entities, many of whom say that it is necessary to change the legislation, but if we have a contract signed by an investor and the president or the prime minister, it will be a guarantee enshrined in an investment contract. The contract will include tax rates, tariffs and relevant guarantees. This is important. This really reduces investment risks," underscored Martynov.

Government members backed the draft law. It will be soon submitted to the Supreme Council for consideration.

 

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