Government is increasing tax burden on SMEs, says PPPDA

The Dignity and Truth Platform Party (PPPDA) says that the recent legislative initiative introducing a new tax of 1.5% on the electronic communication services provided by IT companies is increasing the tax burden on small and medium enterprises in the field. The party warns that this bill will also affect end consumers by leading to higher prices for Internet, TV and telephony, IPN reports.

PPPDA deputy chairman Alexandru Slusari told a press conference that the new tax is an attempt by the government to overburden electronic communication providers. He claims that authorities see TV, Internet and telephony services as a luxury for Moldovan citizens who thus must pay exaggerated taxes and fees for them.

“The small and medium businesses in innovative fields are providing tens of thousands of jobs in Moldova. This initiative is continuing the efforts to monopolize the economy. The proposed tax will have a disastrous effect on small and medium operators in the field of electronic communications, who may not be able to resist the competition of bigger companies”, explained Slusari.

PPPDA secretary general Chiril Motpan says that the authorities didn’t respect the legal procedure by submitting the bill for public debates during the holiday period. It also lacks an assessment of its potential impact on businesses and consumers. “Our government is ready to squeeze money out of stones in order to stay in power”, accused Motpan.

Stanislav Pavlovschi, PPPDA deputy chairman, thinks this is only further proof that the current government doesn’t understand how a modern state works. In Moldova, the state and the people are seen as a source of money. “The role of the government is to protect citizens, not to rob them. 1.5% may not seem a lot, but it’s simply not justified”, said Pavlovschi.

PPPDA demanded the bill to be withdrawn and urged Moldova’s civil society and development partners to share their expertise and show the potential impact of the proposed tax.

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