● WEDNESDAY, March 9
Dismantling of hundreds of billboards will lead to lower incomes in Chisinau budget, association
The Association of Advertising Agencies of Moldova sent an open letter to Mayor General of Chisinau municipality Dorin Chirtoaca, warning him that the plans to take away hundreds of billboards will lead to a significant decline in the amount of incomes that are to be collected into the municipal budget from this sector. According to the letter, in the municipality of Chisinau there are now 157 street advertising and printing agencies that employ over 2,200 persons. “These figures do not yet include the personnel from the areas affiliated to the street advertising agencies such as the design and maintenance services companies, which will also be seriously affected if the billboards start to be dismantled,” said the Association.
Imbalance on Transnistrian currency market
The Transnistrian market is facing a shortage of foreign currency, especially US dollars. Local specialists say the imbalance on the currency market is due to the decline in the price at which the electric power is now sold to the right bank of the Nistru River. According to the Transnistrian press, now that the price of electricity is by 28% lower, there will be a shortage of about $65-70 million in the region. This will influence the currency market even more, while the deficiency of US dollars will continue to be felt.
Initiative to strengthen banking system gives exaggerated powers to central bank, CAPC
By the bill to amend the Law on the National Bank of Moldova and the Law on the National Commission for Financial Markets, exaggerated powers are given to the central bank. After this showed that it cannot manage the problems in the financial-banking sector, it cannot be practically spared of control on the part of the state. Such a conclusion was reached by experts of the Center for the Analysis and Prevention of Corruption (CAPC), who assessed the vulnerability of the bill to amend the two laws. In a news conference, CAPC expert Viorel Parvan said the bill was drafted to implement the recommendations of the International Monetary Fund and the World Bank, which were formulated after assessing the financial system of Moldova in 2014, and to eliminate the inconsistencies between the national legislation and the primary legislation of the EU. But the informative note wasn’t appraised by the state institutions and does not include a synthesis of the recommendations of civil society or the provisions of the EU laws to which the national legislation is adjusted.
Energy Efficiency Fund accepted about 250 projects during three years
The Energy Efficiency Fund (EEF) in 2013-2016 approved financing for 246 energy efficiency and renewable energy projects submitted by such public institutions as hospitals, schools, nurseries and homes of culture as well as street lighting projects. The data were made public in the open hearings staged by the parliamentary commission on public administration, regional administration, environment and climate change. EEF director Calin Negura said that these were selected out of 1,300 applications presented within the six calls for proposals published by the Fund. The total value of these projects is 575 million lei. The contribution of the EEF is about 417 million lei of this. “Given the financing commitments assumed by the EEF based on the approved projects and the resources transferred from the budget in 2012-2013, the deficit is 120 million lei. In 2014 – 2015, no money was transferred from the state budget to the EEF,” he stated.
Property tax for owners of large and expensive real estate
The private individuals who won realty that is larger than 120 square meters and whose estimated value, determined by the local cadastral bodies, exceeds 1.5 million lei will pay a property tax. Such provisions are contained in a bill to amend and supplement a number of legal acts and result from the budgetary-fiscal and customs policy for 2016, which was finalized by the Ministry of Finance. In the March 9 meeting of the tripartite commission for collective negotiations, Minister of Finance Octavian Armasu said the estimated value of this property, determined by the local cadastral bodies, will represent the tax basis. If the property was mortgaged, the tax basis will be established from the positive difference between the estimated value of the property and the yet unpaid sum.
Tripartite commission approves budgetary-fiscal policy
The budgetary-fiscal and customs policy for 2016 was unanimously approved by the tripartite commission for collective negotiations in a meeting on March 9. This is to be submitted to the Government and Parliament for consideration. According to a press release of the Minister of Economy, Minister of Economy Octavian Calmac, who is the commission’s chairman, said the discussions held within the tripartite commission will have a positive impact on the policies initiated and promoted by the Government as this is a platform for direct communication and cooperation with the interested sides, the partners and civil society. Minister of Finance Octavian Armasu presented the main proposed amendments. Among these are to increase the period for reporting losses resulting from entrepreneurial activity from three to seven years, to introduce a property tax for private individuals who won realty that is larger than 120 square meters and whose estimated value, determined by the local cadastral bodies, exceeds 1.5 million lei and to raise the fixed excise duties on alcoholic drinks, oxygen, nitrogen, jewelry, vehicles and other goods in line with the rate of inflation projected for 2016 (10.5%).
● THURSDAY, March 10
Proposals for simplifying issuing of authorizing documents for agrifood products
The bill to amend and supplement a number of legal acts (concerning the issuing of certificates, authorizations and other permits in the sanitary-veterinary and phytosanitary sectors) suggests removing about 10 authorizing documents. The proposals for modifying the procedure for issuing such documents for the import, export and transportation of agrifood products were presented in a roundtable meeting. According to the Ministry of Economy, the bill provides for the substitution of the procedure for registering with the National Food Safety Agency with the notification procedure. There will be used an integrated information system by which the Agency will monitor all the operators. The license for the import and/or storage or sale of phytosanitary products and/or fertilizers and the license for veterinary pharmaceutical activity and/or veterinary assistance will be eliminated. In the event, Deputy Minister of Economy Vitalie Iurcu said the Ministry, through the pursued policies, supports the facilitation of external trade and the penetration of new markets.
Sales of fixed Internet access services at over 1bn lei
The number of users of fixed Internet access services in 2015 rose by 25,200 on a year before. The sales of such services increased by 11.8% to over 1 billion lei. According to the statistical data of the ICT regulator (ANRCETI), the rise in sales was due to the larger revenues obtained by practically all the relevant providers, with “Moldtelecom”, “Starnet Solutii” and “Sun Communications” reporting the largest sales of such services. The sales of “Moldtelecom” grew by 66.5 million lei, of “Starnet Solutii” – by 28.7 million lei, while of “Sun Communications” – by 12.5 million lei. The cumulative sales of the other 77 providers rose by 2.8 million lei to about 95.2 million lei. As a result, the monthly average revenue per use increased by 5%.
Representatives of SMEs informed about benefits of DCFTA
More than 100 representatives of small and medium-sized companies could inform themselves about the benefits of the Deep and Comprehensive Free Trade Agreement (DCFTA) that forms part of the Association Agreement signed by Moldova with the EU. In an event staged by the Ministry of Economy, businessmen could put questions directly to representatives of the authorities and the development partners. In the opening of the event, Deputy Prime Minister and Minister of Economy Octavian Calmac said the Ministry and the European Union strengthened their communication capacities so as to inform the business entities of Moldova about the possibilities offered by the DCFTA and methods of solving problems that can appear at the initial stage of delivery of goods and services to the EU market. The Head of the EU Delegation to Moldova Pirkka Tapiola said the identification of new commercial partners will be facilitated by the knowledge of the norms applied by the EU on the export of products and services. He called upon the participants in the conference to use all the available means to inform themselves in this regard.
● FRIDAY, March 11
Ex-contender for National Bank governor: Contest wasn’t fully transparent
The contest to choose the candidate for the post of governor of the National Bank of Moldova wasn’t fully transparent, Vadim Branzan, one of the former candidates for this post, said in the program “Interpol” on TV 7 channel. “The contest was transparent up to the stage of interviews. I think these should have been published on a website so that all those interested could have listened to them and drawn conclusions,” he stated. Vadim Branzan, who is an expert in economy and finance and who settled in the U.S. a long time ago, said that he applied for the post of National Bank governor for patriotic reasons. “I’m a multimillionaire and the salary of the governor of the National Bank of Moldova in Chisinau is equal to the salary I pay to my housekeeper in the U.S. The economy of the Republic of Moldova was brought to its knees and I wanted to contribute to its recovery,” he said.
Pre-completed statement in support of taxpayers
The deadline for submitting tax returns and paying the income tax for 2015 is March 25, 2016. When submitting the tax return, the persons can use the pre-completed statement with information that is contained in the database of the State Tax Service. The private individuals-taxpayers who submit the tax returns on paper can ask for a standard form from a local tax inspectorates by presenting the identity card, regardless of the place of residence. If the taxpayer possesses a digital signature, the pre-completed statement can be seen by accesisng the personal office at www.fisc.md. This instrument is designed to reduce the time needed for filling out the statement and enables to make corrections to it if necessary.
● SATURDAY, March 12
Moldovan-Chinese intergovernmental commission to meet in second half of year
The Moldovan-Chinese intergovernmental commission for commercial-economic cooperation will have a meeting in Chisinau in the second half of this year. The Chinese authorities are interested in the implementation of large-scale investment projects in the Republic of Moldova. The issues were discussed in a meeting of China’s Ambassador to Moldova Zhang Yinghong and Deputy Prime Minister and Minister of Economy Octavian Calmac. According to the Ministry of Economy, Octavian Calmac said that China is an important partner of the Republic of Moldova. The Moldovan side offered the Chinese side to stage a meeting of the intergovernmental commission for commercial-economic cooperation in Chisinau in the second half of this year. The meeting will discuss aspects of the bilateral relations, including the initiation of negotiations on the signing of a Free Trade Agreement between the two countries.
Number of authorizations and certificates for doing business to be reduced
The number of authorizations, certificates and other permits needed for doing business will be decreased. At the beginning of the March 12 meeting of the Cabinet, Prime Minister Pavel Filip said that he signed two orders to set up an interministerial working group that will analyze the authorizing documents issued to business entities by ministries and other authorities. The Prime Minister said that there are now 416 authorizing documents. He requested that the working group should examine all the given documents by April 15 and their number at the initial stage should be reduced by at least 25%. “The documents that do not correspond to the good regulations defined in the legislation should be eliminated the first,” stated the Premier.
Lower electric power tariffs from April 1
On April 1, the electricity tariffs for end-users will be decreased by 8 to 11%, depending on the area. A decision to this effect was taken by the National Agency for Energy Regulation on March 12.Thus, the consumers served by “RED Nord” will pay 2.04 lei/kWh, as opposed to 2.23 lei/kWh at present. Those served by “Gas Natural Fenosa Furnizare Energie” will pay 1.92 lei/kWh, as against 2.16 lei, while those served by “RED Nord - Vest” – 2.14 lei/kWh, down from 2.33 lei.In the meeting, the power suppliers said the reduction in the import price of power should be used to cover financial deviations in the energy sector. According to them, it’s no use reducing the price for end-users and to then increase it when the financial deviations of millions of US dollars are included in the price.
Vehicle tax to be applied from 2017
The vehicle tax or vehicle excise duty stipulated in the draft fiscal and budgetary policy for this year will begin to apply on January 1, 2017. Minister of Finance Octavian Armasu, in the March 12 meeting of the Cabinet, said the new tax enables the local public authorities to increase their budget incomes. The tax basis for the vehicle tax remains the same – the technical characteristics specified in the car’s registration certificate, namely the type, capacity of the engine and number of places. The excise duty will be equal to the tax for using public roads by motor vehicles registered in Moldova for 2015.
Draft fiscal, customs and budgetary policy for 2016 approved by Cabinet
The Cabinet on March 12 approved the draft fiscal, customs and budgetary policy for 2016. This is aimed at ensuring a stable economic environment that will be favorable for developing businesses and attracting foreign investors and at creating equitable contribution mechanisms for private individuals. In order to support the business environment, the Government suggested increasing the period of reporting losses resulting from entrepreneurial activity from three to seven years. It also reviewed the tax basis for advertising devices.
