Business community pressured to abolish higher tariffs on acquiring and collecting commission
On October 30th, 2014, the National Bank reversed the decision on minimum fees for collection services and acquiring.
It was abolished due to negative reactions in the business community to the higher costs of these services for the enterprises, which could entail the closure or suspension of activities for many trade organisations. The National Bank will continue implementing measures that seek to increase the share of non-cash payments in the total settlements in the economy, including physical persons and legal entities. Physical persons may be forced to make more non-cash payments, while enterprises might be pressured to pay workers’ salaries to bank accounts.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.