Tiraspol, 27 May. /Novosti Pridnestrovya/. The law "On state support for investment activities" comes into force on 1 June. The main objective of the document is to attract capital to Pridnestrovie, to encourage the opening of production facilities, to create additional jobs and to ensure the inflow of currency, prime minister Alexandr Martynov said on Pridnestrovian TV. He noted that this law was chiefly intended for export-oriented investors.
"And if we achieve these goals, this will do a lot for our economy; this is the chicken that will start bringing gold eggs within five or seven years hen tax preferences expire and taxes go to the budget. These advantages are quite substantial, and we must ensure them," Martynov emphasized.
The higher the risk, the more profit the investor must earn
Investing in the Pridnestrovian economy is rather risky, the prime minister said. Therefore, the state intends to ensure the investor's profit rate due to more favourable taxation, more reasonable energy tariffs, the location of Pridnestrovie and the terms of trade. At the same time, Alexander Martynov added, "Pridnestrovie can trade with both the Eurasian Economic Union and the European Union, which it is duty-free." "These are the main factors that affect positively the investment attractiveness of Pridnestrovie," he said.
The local manufacturer will be protected
The country has a law restricting competition and antimonopoly activities, which prohibits the creation of special preferential conditions for those enterprises that sell in the domestic market.
"The law specifically stipulates that if one investor sells its products in the domestic market and there is at least another enterprise that sells exactly the same products here, then this investor does not receive any tax benefits. He works in the same conditions as the current producer; otherwise, these are unequal business conditions and discrimination," stressed Alexander Martynov.
The new law does not guarantee success
As Alexander Martynov noted, the adoption of the law "On state support for investment activities" is not a guarantee of success. He said there were cases when the best laws were passed, but no one knew anything about them because of the lack of "promotion" among consumers.
"Therefore, today the task has been set before the Ministry of Economic Development - I held talks both in Russia and in the European Union - to convey this law to as many potential investors as possible, that is, to make it work. Only in this case can we say that investors will show interest in our republic," Alexander Martynov underscored.
The prime minister also noted that today there were up to five investment projects developed by the government.
"If everything goes well, if there are no external turbulence, we'll be ready to sign the first investment agreements by July," he concluded.
