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Legal Commentaries

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Parliament Activity, November 1-5, 2004
10 November 2004

During the aforesaid period the draft law on amending the Law on State Budget for 2004 took the centre stage.

I. Law on the Amendment of the State Budget for Year 2004

ADEPT Comment: The law decreases budget revenues by 170 million Lei and increases expenditures by 109 million Lei. Total budget revenues would amount to 5.477 million Lei, whereas total expenditures 5.416 million Lei with a meagre budget surplus.

The law has shown that this year less excises would be levied than initially forecasted - 109.1 million Lei (only for oil and diesel budget would not get excises worth 59.1 million).

Due to the fact that national currency exchange rate against other convertible currencies was lower than the forecasted one, net revenues to the state budget had reduced by 251 million Lei. Noteworthy, National Bank gathered a rich harvest of criticism from the President himself who threatened with reshuffles in the Bank leadership by the end of the year.

Under the budget, funds were allotted to pay back compensation as ruled by the court for cancelling contracts with foreign investors: 20.2 million Lei to Dacia hotel owners and 25.4 million Lei to Europharm. Also under the law budget would not receive foreign grants worth 277.5 Lei.

To collect additional revenues as provided by the law, by the end of the year fiscal revenues should surge by 267 million Lei, whereas revenues collected by Customs Department by 471 million Lei.

The law provides additional expenditures in several areas, one of them redeeming debts of the State Company "Teleradio-Moldova" worth 14.2 million Lei. Opposition criticized this initiative. It also provides for establishing a fund worth 15.3 million Lei providing subsidies for fall agricultural works.

II. Law on Reducing VAT on Sugar

ADEPT Comment: Under the law, 8% VAT shall be applied to beat sugar imported and or delivered on the soil of the Republic of Moldova, as compared to 20% this year.

The law comes in response to the crisis, when sugar market was over flooded (about 108 thousand tones amidst average domestic consumption of 80 thousand tones) as a result of smuggling from Ukraine through the eastern regions of Moldova.

It is expected that the law would put an end to smuggling, boost domestic production and as a result bring more revenues to the state budget.

III. Law on Modification of the Law on Veterans

ADEPT Comment: Under the law, persons who have a work experience over 35 years for women and 40 for men and are not decorated with orders or medals, have no honorific titles shall be eligible to one free trip to a sanatorium once in three years. Until now only veterans decorated with medals or honorific titles were entitled to such benefits.

IV. Law on Ratification of the Convention Prohibiting Development, Production, and Stockpiling of Bacteriologic Agents and Toxic Weapons

ADEPT Comment: Convention was signed on April 10, 1972. This convention bans the development, production and stockpiling of such substances not required for peaceful purpose.

It is believed that by ratifying the convention our country would earn a pacifist image and would be seen as sharing commitment to international security and disarmament.

Parliament had one reservation to the Convention, namely until restoring territorial integrity of the Republic of Moldova, Convention provisions shall apply only on the soil under the control of Republic of Moldova authorities.

V. Law on Enforcing the Convention Prohibiting Development, Production, and Stockpiling of Chemical Weapons and their Destruction

ADEPT Comment: Moldova ratified the Convention back in 1995 and has been in force on the soil of the Republic of Moldova for almost eight years. The law passed by the Parliament outlines procedures of enforcing the law, rights and obligations of the subjects of law, interdiction to any person to use prohibited chemical weapons, as well as responsibilities of the specialized National Authority in the field.






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