Moldova: Businesses against tax on reinvested profit
The taxation of economic entities' reinvested profit may be resumed not earlier than in 2011, Deputy Minister of Finance Viorel Dandara told Infotag.
He remarked that the cancellation of the zero tax rate is inevitable under the conditions of the decrease in the budget revenues and the high expenditures.
"In the principal, this privilege may be preserved, but only provided a better solution for replenishing the budget is found", Dandara said. In his words, the income tax will be restored only after the ministry discusses this problem with business people and will come to agreement with them.
This tax will constitute 10% or 15% of their income, the Vice-Minister added.
He hopes that the society will support it and will understand the state's reform and will accept positively the introduction of the tax on reinvested profit.
Chairman of the National Association of Moldovan producers, Director General of the Viorica Cosmetic company Ludmila Neguta considers that it is necessary to preserve the zero tax rate on the reinvested profit during the global financial and economic crisis.
"In order to attain the high competitiveness and high quality of Moldovan products, local producers must reinvest in new advanced technologies and new equipment", Neguta remarked.
She said that many local producers expanded their businesses owing to this privilege.
The budget revenues may be replenished from other sources, for example, as a result of the strict customs control, in order not to admit low-quality products to the Moldovan market without obliging Moldovan producers to pay enormous financial resources to the state, as in at any rate it will be not sufficient", Viorica Cosmetic Director General considers.
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