The Deputy Prime Minister announced it in the new TV show of the Pridnestrovie’s First Channel named “The Economy in Details”
The main topic of the yesterday's conversation between the Deputy Prime Minister – the head of the Price and Antimonopoly Activity Committees Vitaly Ulitka and the head of the Nezavertalovka’s fishery Vasily Chebanov was the import substitution. Specifically, they discussed the issue that most of the Pridnestrovie’s businessmen preferred to sell the imported goods than to support the domestic manufacturer.
According to Vitaly Ulitka, it is a difficult question for the Pridnestrovie’s economy as there are more preferences for the trade enterprises.
“The resale markup is the main tax base of the trade enterprises, so there is a certain misbalance in respect to the fact that the tax base of some domestic manufacturers is the income tax from the sales of products, the goods and the services. This manufacturing can become unprofitable due to the primecost mechanisms,” Vitaly Ulitka noted.
The lack of the domestic manufacturing threatens Pridnestrovie with the currency devaluation and the inflation, so the state wouldn’t discharge all the duties probably, Vitaly Ulitka considers.
“When the export decreases, the import increases. So, this means that the currency export and the capital outflow will fuel someone's economy. For example, when the import of cheap fish from Ukraine prevails, this means that we fuel the economy of the other state. We don't support the domestic manufacturer who gains the income but also they pay taxes and provide jobs. Our state needs to explore seriously the import substitution issue because this is a question of the state’s food security,” Vitaly Ulitka told.
