Tiraspol, June, 11. /Novosti Pridnestrovya/. Representatives of Berlin Economics consulting company presented in the Government an expert assessment on the tax reform carried out for individual entrepreneurs.
Recall, from April 1, republican entrepreneurs work in a new way. Depending on the types of activities and the volume of turnover, this business segment is divided into 3 tax regimes: “self-employed” individuals, persons working under a patent, and those who work under the simplified tax regime.
As the project manager Jörg Radeke said, the experts analyzed the old system and compared it with what had been reformed.
“Patent holders make up the bulk of the workforce, but at the same time there is a very small tax contribution from them. The main problem here is unequal conditions. Not surprisingly, everyone wanted to become patent holders, and their number grew. And this led to the erosion of tax deductions and social contributions. We believe that their number grew due to the number of officially employed or legal entities, which were then re-registered as patent holders,” the Government’s press service quoted Jörg Radeke.
The expert appreciated the reform and noted that it was necessary to maintain the balance - to enable one to keep simple reports, and the other to identify the type of activity that does not require reporting. The project manager said that tax reform had fulfilled its purpose.
“In general, we evaluate the reform positively. Especially in that reform created a new simple form for doing business, which had not been the case earlier. Nevertheless, we believe that it is necessary to take further steps to implement a sustainable balance between simplicity of doing business and fair taxation and to limit those activities that can be carried out. Patent owners should be motivated to move to a simplified system,” the specialist noted.
The Head of Government noted the importance of the analytical studies conducted in Pridnestrovie by a consulting company and thanked for the work done.
“For us, an objective independent assessment of the results of the ongoing reforms is important. There are different opinions on this reform. Usually such reforms are perceived in such a way that the State wants more money. But in fact, you know that we are very careful about tax burden issues and mainly try to solve the issue of tax deductions due to the growth of the tax base - economic growth, and not due to the growth of rates,” Alexander Martynov said.
According to the Prime Minister, during the reform, the Government tried to take into account all the risks.
