Trade unionists have submitted a series of proposals on fiscal, customs and budgetary policy for 2016

National Trade Union Confederation of Moldova (NTUCM) have submitted its proposals and suggestions to the draft Law on amending and supplementing certain legislative acts regarding fiscal, customs and budgetary policy for 2016.

Thus, trade unionists are against the exclusion of the tax for road use from the category of sources of the Road fund and from district budgets sources, as well as its passing to the category of local taxes.

Also, NTUCM has presented its disagreement on the exclusion of the allowance for dismissal from the category of non-taxable income source, given that this is not a salary, but it is an indemnity / compensation for the damage as a result of job loss and thus of the income.

Trade unions do not agree neither with the introduction in the the Law on public system of social insurance the provisions according to which the postponement and rescheduling the extinguishing of tax liability to the budget of state social insurance is carried out in the terms and conditions established by the Fiscal Code, similar to taxes and fees. Moreover, it requires completion of the Law so that this process does not affect the achievement of social insurance rights of the policyholders. There are many situations when policyholders, even though they were paid salaries and contributions were withheld, don’t have the right to old-age pension because the employer has not made the required social security deductions.

In order to reduce the tax burden for individuals, NTUCM proposes to increase personal exemptions and those for dependents up to an amount equal to the subsistence minimum.

At the same time, it requires the decrease of reduced rates of VAT from 8% to 5% for bread, bakery and zootechnics, medicine and natural gas, also setting the VAT rate of 5% for socially important products and services of strict necessity, clothing and footwear for children, as well as personal protective equipment that the employer is obliged to provide free of charge to employees.

Another recommendation is related to deduction of the trade union membership fee paid by individuals during the fiscal year in the amount of 1% and exemption of trade unions and employers organizations from the obligation to present Declaration on income tax.

Regarding the proposal to sanction the consumer for unanswered cash receipt, failure or refusal to submit it to the request of the control body, trade unions believe that it is a right, but no obligation, and therefore the consumer can not be penalized for no use of a right.

Also, in the context of the difficult situation of young people in employment, trade unionists ask not to permit the exclusion of the Education Code of the fiscal facilities for legal entities that invest their own resources in the development of the education system, offering places for internships for students or employ graduates the first year after graduation, as well as excluding from income tax deductibility of allocations for private scholarships.

NTUCM document with all the proposals on fiscal, customs and budgetary policy Chapter you can access HERE.

Department of mass-media and international relations