Ministry of Economic Development announced measures to stimulate processing industries

01/30/20 16:57

Ministry of Economic Development announced measures to stimulate processing industries

The proposed bill facilitates the access of agricultural producers to preferential tax

Tiraspol, January 30. /Novosti Pridnestrovya/. The Ministry of Economic Development announced measures that will contribute to the development of import substitution, the domestic processing industry and the strengthening of cooperation. As Maria Glushkova, Deputy Minister of Economic Development, explained at a Government meeting, this is expected to be achieved by the use of tax levers.

In particular, now farmers have the opportunity to work in a fixed agricultural tax regime and enjoy the benefits of corporate income tax. This can be done by enterprises with a full production cycle. Those that, in addition to agricultural production, are also engaged in its processing.

At present, the right to such tax benefits is provided to those enterprises whose total revenue of at least 80% falls on the sale of agricultural products of their own production or products of their processing. The Ministry of Economic Development proposed to simplify the access of manufacturers to the preferential mechanism.

“Often there is a situation when, for a full load of an enterprise, its own raw materials grown in its fields are not enough. They are forced to buy it from other domestic agricultural producers, which lowers the necessary share of their own raw materials and does not make it possible to use the benefits. We propose changing the mechanism so that 70% of the total proceeds come from the sale of our own products, and 10% - from products from raw materials of domestic producers,” Maria Glushkova explained.

According to the authors of the legislative initiative, such a measure will stimulate farmers not only to grow their own agricultural products (with low added value), but also to create production for its processing.

Now they are not interested in this, because their own raw materials are usually not enough for the normal operation of the processing industries and they need to be bought. While the manufacture of products from purchased raw materials reduces the very share of revenue that the law requires in order to receive tax benefits.

If the proposed amendments are adopted, they will help to maintain a preferential tax regime for those who already work in it, as well as open access to it for other manufacturers.

“Actual bill has appeared for a reason. We have examples in the PMR, when investors have invested quite serious funds in the processing of raw materials and agricultural production. But they cannot work at an economically feasible level due to the influence of tax factors,” Chairman of the Government Alexander Martynov commented.

The bill was supported, now it is waiting for consideration in parliament.


Также в рубрике

03/29/24 14:07
The Ministry of Finance summed up the results of the department’s activities in 2023. The meeting was held via video conference. The PMR President Vadim Krasnoselsky took part in the work. The reporting information was announced by Alena Ruskevich, the Minister of Finance.
03/26/24 19:20
Due to the blockade steps of Moldova, Pridnestrovie may lose up to $100 million this year
02/27/24 12:11
The corresponding changes to the republican budget were adopted in the second reading