Moldovan government submits parliament draft laws on single agricultural tax, social benefits

On March 11, 2013 the government remitted the Moldovan parliament a string of legislative documents providing for the single agricultural tax and the indexation of social insurance and state benefits, the government’s communication and media relations department has reported.

According to the paragraphs No 73 and 74 of the Moldovan constitution, the government remitted the parliament’s standing bureau the draft law providing for the single agricultural tax, carried out by the Agriculture and Food Industry Ministry and approved via government’s decision No 170 of 7 March 2013. The government required its urgent examination.

The draft law includes a series of suggested tax deadlines and payment shares: 30 September- 50 per cent of the annual sum; 30 November- 50 per cent of the annual sum. The forecasts of the state budget income would reach 353.5 million lei, due to the implementation of the single agricultural tax.

The government also required the parliament to urgently examine the draft law amending and supplementing the law No 355-XVI of 23 December 2005, providing for the salaries within the budgetary system, approved via government’s decision No 588 of July 2010 (presented by the Labour, Social Protection and Family Ministry).

According to the government’s decision providing “for the indexation of social insurance and state benefits”, the coefficient of the benefits’ indexation would reach 6.75 per cent in 2013, starting with a 4.6-per-cent annual growth of the consumer price index and a 8.9-per-cent annual growth of the country average salary for 2012. Thus, the minimum old-age pension would reach 749.96 lei monthly.

The draft law also provides for an 8.25-per-cent in pensions lower than 1300 lei and for a 10.4-per-cent increase for beneficiaries of state social benefits. Thus, pensions would increase by 15 per cent, taking into account the indexation of 1 April.

This suggestion would allow an increase in pensions for almost 639 thousand people. The draft law amounts to almost 449.7 million lei, out of which 436.0 million lei would be allocated from the state social insurances budget, whereas 13.7 million lei from the state budget.

Thus, if the parliament backs this initiative, the minimum old-age pension would reach at least 1311 lei starting with 1 April 2013, which complies with the minimum level of existence for 2013 established by the current legislation.

Adapted from: MOLDPRES