Other legal act Approved by Government Order No. 63 / 1966 Coll.
Framework conditions for business management, approved by Government Resolution of 15 July 1966 No 242
Valid
63
FRAMEWORK CONDITIONS FOR ENTERPRISE,
valid from 1 January 1967,
Approved by the Government Resolution of
15 July 1966 No 242
The implementation of the general price conversion on 1 January 1967 creates the preconditions for speeding up the process of improving the planned management of the national economy in accordance with the principles approved by the resolution of the ÚV KSČ in January 1965. In this context, the meeting of the KSČ Institute in April 1966 discussed a programme of accelerated implementation of the new management system, which, as part of the economic policy guidelines for the immediate period, was approved at the XIII Congress of the KSČ.
In addition to the general rebuilding of prices, the nature of this programme consists of:
(a) the transition to more flexible price developments which would help to balance supply and demand and, together with the development of competition, create and strengthen the customer market;
(b) uniform contributions of undertakings to the State budget, which will objective the economic efficiency criteria, to put pressure on lagging production articles and at the same time the scope for the development of progressive articles;
(c) financing of investment from the own resources of undertakings to ensure the full responsibility of undertakings for the efficiency of investments and to break the investment inflation requirements;
(d) the transition to a flexible wage regulation system that would create the preconditions for wage growth to become a more effective tool for growth in efficiency and to allow for gradual denivalisation;
(e) more consistent application of pressure on the world and domestic markets for production.
The basic tool for managing the socialist economy is the nation's economic plan, expressing the objectives that society has set itself for the period in question, and showing the ways and means by which these objectives can be achieved. The National Economic Plan is a clarification of the company's economic policy, is a necessary basis for managing the national economy by the State and is of decisive importance for the efficiency and proportionality of economic development.
The progress of the work on the 1967 plan and on the five-year plan by 1970 must be adapted in such a way that the planning work is affected favourably by new business management conditions. The government assumes that businesses, led by these new conditions, will project an increase in the efficiency of their activities into the draft plan. Therefore, prior to the adoption of the regulations for the speedy implementation of the new management system, with effect from 1 January 1967 at least until the end of 1970, the Government shall establish the following framework conditions for the management of enterprises [State Economic Organisations *):
(1) The existing differentiated gross income (profit) contributions, consisting of the basic levy and the gross income (profit) contribution, will be replaced by a uniform gross income levy (including the current sickness insurance),
(a) 18% in industry and construction; the central authority may decide to transfer 15% of the workers' fund (including the remuneration fund) and 32% of the profits (minus the remuneration fund) to the State budget instead of this levy;
(b) in centrally managed national economic organisations of internal trade, 30%;
(c) 8% for Čedok;
(d) in economic organisations managed by national committees, 16%;
(e) for separate project organisations 16%.
(2) If this does not force the needs of the national economy, the government shall not increase the rates of contributions referred to in paragraph 1; Even if necessary, the government will not raise the rates by more than 1% per year.
(1) The levies and other obligations will be applied in a consistent manner to undertakings in order to objectively affect both progressive and backward undertakings and to lead to an optimal substitution of production factors, which is enshrined in the relative proportions of rates of levies, interest, etc. The trade unions and management national committees have the right to carry out, according to long-term principles, the necessary redistribution of funds by means of pre-determined additional contributions and subsidies to individual enterprises (national committees and internal trade directorates, as appropriate, in the form of surpluses and discounts) without entitlement to the state budget (i.e. the higher level of national committees). From the point of view of the charges, the branch directorate apparatus with associated activities is considered to be an undertaking.
(2) Undertakings requesting subsidies (discounts) are required to propose measures to gradually liquidate their financial dependency on subsidies or discounts while at the same time proposing time limits for the gradual liquidation of subsidies (discounts). The overall programme for the liquidation of additional contributions (surpluses) and subsidies (discounts) in all cases where the conditions are not objective and long-term operating, shall be determined by the branch, after consultation with the undertakings involved in the redistribution of funds.
(3) The redistribution of funds between individual VHJ (e.g. in the form of additional contributions and subsidies) will not be carried out in principle within the departments. Exemptions from this principle shall be determined by the Government on the basis of a reasoned proposal by the Ministry of Finance in an agreement with the State Planning Commission and the Ministry of Finance, in particular for the Ministry of Mining and Food, where justified by the tolerances at the level of profitability in the wholesale price overhaul or where they are subordinate to the central authority of production units having the same production programme and different profitability. Also in such cases, predetermined additional contributions and subsidies under the arrangements referred to in paragraphs 1 and 2 shall be used.
(4) Undertakings shall pay to the Directorate-General for Trade according to pre-established uniform criteria applicable to all enterprises in the field, part of their funds to cover the costs in kind and in person of the branch and to create (supplement) the financial provisions for the sector's needs.
(1) The departments referred to in Articles 1 and 2 shall benefit from municipal and local national committees; the proportion of such national committees shall be set at:
(a) 1% of gross income (or 2% of profit) of industrial and construction enterprises;
(b) 5% of gross income of centrally managed national economic organisations of internal trade.
(2) These shares of the municipal and local national committees will be reduced by contributions to the central budget. The division between the MNV and the MFIs shall in principle be carried out by the undertakings according to the premises of the establishments and establishments on the basis of the share of the fund of the employees of those establishments and establishments (for undertakings in internal trade on the basis of the share of the retail turnover).
(3) The final decision on the rates and the form of the share of the national committees in gross income (profit) contributions of sector-driven enterprises will be taken by the government on the basis of the experience of 1967.
(1) The rates of contributions from basic resources under Decree-Law No 90 / 1965 Coll. on the planned procedure (including provisions on reduced rates) remain in force, with contributions from the residual price of basic funds being made from basic funds financed after 1 January 1967 from the organisation's own resources and from loans. for separate research and development institutes (economic organisations) and for separate project organisations, no contribution will be made from basic resources.
(2) Stock levies (including unfinished production and future costs) of 2% will be introduced. On investment loans, companies will pay interest of 6% and on operating loans a basic interest rate of 4%.
(3) Changes in basic interest rates (which are an operational economic instrument) are made on a proposal from the State Bank by the Czechoslovak Government.
(4) The stocks in the internal trade sector and, exceptionally, for certain undertakings providing services (as defined in the implementing rules), no levy is payable; the basic interest rate on operating credits for the internal trade sector is 2%.
(5) The contributions from basic resources and from stocks, interest on bank loans (except for the increase in the breach of the credit agreement), as well as the allocation of the Geological Labour Fund (where this fund is set up), are deducted from the basis for calculating gross income and profit contributions.
(1) The existing measure in the event of undesirable wage developments (additional levy) pursuant to Sections 9 to 11 of the Decree of the State Labour Commission No 91 / 1965 Coll., on the remuneration of work in the new system of the planned procedure will be abolished and a stabilisation levy will be introduced in accordance with the following principles:
(a) the basis for calculating the stabilisation levy shall be the amount of wages paid in excess of the minimum free of charge;
(b) the levy shall be set at a uniform minimum as the product of 90% of the annual average wage planned by the undertakings in 1966 and the number of employees in the year for which the levy is calculated (for separate project institutes, the national average planned in 1966);
(c) the rate of the stabilisation levy shall be 30% of the base referred to in (a);
(d) the levy thus determined shall be increased depending on the annual increase in the number of workers; for each 1% annual increase in the number of workers, the levy shall be increased by 1% of the wage paid in the year concerned; the detailed rules for the payment of this levy are laid down in such a way as to mitigate the impact in 1967 (e.g. the provision that this increase in the levy is only paid after the end of the year or the distribution of payments on advance and settlement, etc.) *).
(2) The implementing rules need to address cases where the hardness of the impact of the stabilisation levy, in particular for the development of services, internal trade, newly built capacities (including construction), seasonal movements of workers, for separate project organisations, for the development of a research and development base (in the case of emerging capacities and in the areas whose development is preferred), for the employment of heavy disabled persons. * *) However, both the scope and the scope of these adjustments will be strictly defined in order to avoid weakening the effectiveness of the stabilisation levy.
(3) The stabilisation levy will be applied uniformly to enterprises regardless of whether they operate according to the principles of interest in gross income or profit.
(4) The national committees may introduce a premium on this levy (stabilisation) (see Article 17 (6)).
(1) Direct wage regulation instruments are tariff systems (including other basic wage policies) and collective agreements. The management of an undertaking under the rules laid down shall be responsible for the cost-effectiveness of the use of wage resources and the economic efficiency of the instruments of personal material interest, in particular wage forms. The space for the operational use of material incentives for work and remuneration, depending on individual and collective results of work, is determined by the resources allocated for remuneration to the fund of the workers' system of contributions (in accordance with the principles on the distribution of gross income generated) and the long-term concept of wage developments in the enterprise, industry and the whole national economy.
(2) In order to define the area of such direct wage regulation, the principle is that the power of production units and undertakings may be limited by central management only to the extent necessary, corresponding to the social interests of wage regulation. This concerns, in particular, tariff wages which continue to function in the new system as the basic social regulator of the level of pay of individuals, groups of workers, enterprises, disciplines and, respectively, the whole sector according to the qualifications, responsibilities, workload and complexity of the work carried out.
(3) The regulatory role of collective agreements is essentially to establish the principles of wage development, the share of the workers' fund (remuneration fund) in the own funds of undertakings, both expected and increased gross income (profit), the measures in the absence of gross income and the resulting shortfall in wage payments and the size of the various components of the average wage, in particular the share of the economic performance of firms and in-house services. Undertakings shall decide separately on the use of own funds created for remuneration and other needs, once the contributions have been met.
(4) In applying the principle that undertakings are to fully finance their investments from credit and own funds, i.e. gross income generated and depreciation, it must be assumed that, within the overall funds remaining to undertakings after the specified contributions, the wage (workers' fund) must grow relatively slower than other needs. At the level of the VHJ, the allocation of funds to individual funds in the spirit of this trend will be regulated by specific provisions of the sectoral collective agreement.
(5) The economic management system, the main objective of which is to significantly increase the efficiency of the social work carried out in the shortest time, requires the focus of the attention of undertakings in the manufacturing sector, in particular, in order to create a significant dependency of wages on the overall economic performance of undertakings and in-house services (shares in economic results). This is in particular related to the care of enterprises for the correct and economically effective structure of the wages of individual workers and groups of workers.
(1) Expenditure on investment construction, including the cost of its preparation, will in principle be paid by undertakings on their own resources, using an investment loan; only exceptionally will subsidies be provided from the state budget.
Compensation for damage (property damage) caused by mining activities is regulated by the relevant regulations.
(2) Investment construction will be financed from investment credits, depreciation of basic funds, applicable gross income (or profit), other resources (income from the liquidation and sale of basic funds, allocations from the cultural and social needs fund, etc.) and subsidies from the state budget provided under government rules.
(3) In principle, in order to cover investment construction, the own financial base of undertakings will not be created in advance by lower gross income (profit) contributions, as investment credit must play a decisive role. A bank loan for investment shall be granted in accordance with the uniform conditions referred to in Article 8. The amount and maturity of the loan will be determined taking into account the specificities of the investment cycle in the different sectors and sectors of the national economy and the creation of own financial resources.
(4) The branch directorate, which is the holder of the investment policy concept, carries out its management role in this area, both by influencing the focus of investment in the selection procedure and by organising the economic integration of firms in the investment construction by means of participation or mutual lending between undertakings.
(5) The Trade Directorate may impose an obligation on undertakings to transfer part of the depreciation of plants for disposal to the financial reserve of the Trade Directorate.
(6) The arrangements for economic association, mutual lending and exceptional redistribution of depreciation between undertakings and the Directorate-General for Industry will be determined by implementing rules.
(1) The main source of financing for investment construction is bank loans granted under government rules. The repayment of the investment loan is a specific expression of the investor's liability for the return on investment. The Czechoslovak State Bank is based on the total volume and indicative distribution of investments in the state plan and the results of the selection procedure, carried out according to maximum efficiency. The State Bank is not obliged to meet the indicative investment volumes and investment credits for sectors, disciplines and areas unless the efficiency criteria are met.
(2) The main criteria for granting the credit are the relationship between the time of repayment of the investment loan and the economic life of the underlying loan and the effectiveness of the investment. The maturity of the loan shall not exceed the economic life of the underlying. When granting a loan, investors who use more profits to speed up the loan are usually preferred.
(3) Therefore, individual loans are assessed mainly by reference to the relationship
100 maturity of credit - 100 economic life of the credit facility
In so doing, the economic life of the underlying loan shall be determined in accordance with the depreciation rate in force.
(4) At the same time, the bank also takes into account the maturity of the loan in the selection procedure. In this respect, it prefers the same (or even slightly smaller) share of profit in the amortisation amount to short-term loans. The implementing rules shall determine when and under which conditions the Bank may authorise the deferral of interest on investment loans.
(5) The source of funding for a preliminary and detailed geological survey by mining organisations of the Ministry of Mining and the Ministry of Construction is the Geological Works Fund. The Geological Work Fund is set up with the Ministry of Mining as a branch and with the Ministry of Construction as a company.
(1) The depreciation of the basic funds is used by undertakings to repay the outstanding price of the basic funds and the outstanding construction on 31 December 1966 in the form of amortisation payments and, secondly, to pay directly the construction and repayment of investment loans. The use of depreciation outside investment is inadmissible.
(2) For each undertaking, the annual contribution of depreciation to the central funds shall be fixed at the percentage of the remaining price of the basic funds in operation on 31 December 1966 and of the amount of unfinished construction on that date, minus the amount invested in 1966 from the applicable gross income and credit. *) The basis for calculating the amortisation of depreciation on 31 December 1966 shall be determined on the basis of the accounting records, in the valuation and in the methodology applicable in 1966, excluding basic funds with a cost of up to 3000 CZK and basic funds, acquired as CO investments and separate investments in the budget plan.
(3) The rate of the annual depreciation (%) shall be determined by reference to:
6 × business rate of depreciation for recovery in 19664,
where 6 is the nationwide average percentage rate of the annual depreciation, where the corporate rate of the depreciation in 1966 is the average corporate depreciation rate in 1966, minus the average depreciation rate in 1966 for overhauls, and 4 is the average depreciation rate in 1966. The payment shall be made in each year by the same amount, until the remaining price of the basic funds and the unfinished construction in the state at 31 December 1966 is fully repaid. In individual cases, the Czechoslovak State Bank may authorise the transfer of the payment of depreciation payments to subsequent years if the contribution would exceed the creation of depreciation.
(4) The basic funds will be amortised only up to the purchase price and the depreciation rates will exclude the shares of the previous overhaul. General corrections will be financed in the same way as normal repairs from costs, with a possible time resolution, with the boundaries between general repairs and investments being clarified in particular by excluding complex reconstruction, which will be considered as investments within the meaning of the implementing directives.
(5) The threshold applicable to the definition of small and short-term articles will be increased to 3000 CZK (with the exception of certain means which will always be the nature of the investment). At the same time, the way they are amortised will be adjusted.
(6) Major changes in the planning and financing of the reproduction of basic funds lead to the need to review the current depreciation policy. the issue of new depreciation rules will be decided in the fourth quarter of this year. In the absence of new depreciation rates, undertakings would use the rates in force, reduced by 2 / 3 of the share of depreciation attributable to overhauls. The new depreciation policy (including the issue of the commitment of depreciation rates) will be determined in such a way that the conditions of business management do not deteriorate *) and that the principle of unity of contributions and the objectivity of economic criteria for the efficiency of businesses is not undermined.
(7) The valuation of basic assets and unfinished construction will be adjusted by the influence of the general adjustment of prices by the global index method (machines and equipment index 123, buildings and buildings 119).
(1) Subsidies from the State budget are granted to economic organisations applying the general method of financing investment construction exclusively for specific investment actions.
(2) Subsidies shall be made available under the pre-planned appropriations provided for in the State budget:
(a) to finance CO investments and separate investments in the budget plan in full to the extent of the specific part of the State Investment Plan;
(b) to finance separate actions of water and air treatment plants, taken retrospectively for existing establishments, amounting to 50% of the budget prices; the grant is drawn from the State budget of 50% of the annual investment in these actions;
(c) for newly launched projects addressing regional problems at the level of government-designated shares in the budgetary costs of the action; State budget subsidies are drawn according to the actual implementation of the buildings in the designated actions (Article 17 (2));
(d) exceptionally, the government will grant subsidies for certain investments that have been built-up and newly started, which are nationwide necessary but are not in line with the direct interest or (even in proper management) with the possibilities of the organisation.
(1) For economic organisations managed by national committees (except urban transport and housing) and for undertakings in the internal trade sector, a general method of financing investment construction and the same method of payment of depreciation and their use will be applied as in industry and construction; However, for these organisations, gross income rates are determined by creating conditions for the relatively higher participation of the gross income generated in the remuneration of investments and thus for the relatively lower share of credit. In these sectors too, the need to invest before creating own resources will be preserved.
(2) In the economy managed by the national committees and in the undertakings of internal trade, a higher proportion of the subsidies from State resources to cover investment construction is envisaged. These subsidies will focus primarily on developing services for the population and developing the retail network. They shall be provided in accordance with predetermined rules so as not to interfere with the role of credit and efficiency criteria and be not a subjectively distorting instrument between income and expenditure of enterprises and relations with the State budget.
(3) The construction of commercial facilities in new settlements will continue to be financed from the state budget as part of a complex housing construction, with the construction of buildings being essentially leased to business organisations for economic rent. The investor of complex housing will discuss with business organisations that these will also ensure operation in commercial facilities built in the framework of complex housing before the project documentation is approved. These provisions shall also apply to facilities providing services to the population.
(4) National committees may, by their means, grant grants to investment actions they are interested in implementing.
(1) The uniform gross income payments as well as the principles of financing investment and the management of depreciation leave businesses sufficient freedom to make economic decisions on the use of the financial resources generated. Undertakings are obliged to follow their long-term interests in this decision and to ensure smooth development, to ensure the necessary liquidity of their financial management corresponding to the creation and addition of corporate funds, in particular the reserve fund, and to involve free own funds in the financing of circulation.
(2) The minimum level of reserves for 1967 is set at 2% of the annual amount of the Fund of Workers. The minimum allocation to the fund of cultural and social needs shall be fixed by the government at 0,8% of the annual volume of the fund of workers.
(1) Supply and customer relations between foreign trade organisations and domestic organisations will be carried out on the basis of foreign prices in principle. On the one hand, the combination of appropriate economic instruments will require bridging the differences between internal and foreign prices, both in terms of export and import, as well as comparing foreign price relationships with those of new wholesale prices and making the structure of production and turnover of foreign trade more efficient.
(2) The instruments of economic management of imports by the bank will gradually be applied, both by internal foreign exchange credit and by selling foreign exchange at free prices. The prices of the imported goods will be affected by the bankruptcy premium fixed in the case of free-price foreign exchange sales, taking into account demand and supply.
(3) Foreign trade undertakings will be involved in their gross income.
(1) For the separate economic organisations of research and development bases, the following different management conditions shall be established from the framework management conditions:
1. they will be interested in the technical and economic results of solving tasks through material involvement in gross income (profit); the uniform gross income (profit) levy to the State budget and the national committees, the basic resources levy and the stock levy will not apply;
2. expenditure on investment construction will be paid within the production unit from own resources, from centralised sources of the sector and using investment credit; grants from the state budget will be provided to these organisations for selected advanced and newly launched investment actions and for the provision of selected tasks of the State Science and Technology Development Plan to them for machine and instrument investment;
3. the investment construction of centrally managed economic organisations of the research and development base will be established by the Science and Technology Fund;
4. economic organisations of research and development bases within production units will be provided with foreign exchange funds (or grants for the investment contribution) for import machinery, apparatus and equipment necessary to ensure the selected tasks of the State Science and Technology Development Plan;
5. centrally managed economic organisations of the research and development base, the volume of foreign exchange funds will be mandated by the Science and Technology Fund, without prejudice to the possibility of buying foreign exchange from their own resources.
(2) Independent research and development sites shall be subject to the same operating conditions as the organisations of which they are part, except in cases established with the approval of the State Technical Commission (where the scheme referred to in paragraph 1 applies to them exceptionally).
(3) Supplier and customer relations will take place on the basis of free prices on the science and technology development section; for the use of the results of technical development paid by other organisations or from the state budget, the organisation will pay a remuneration of the agreed price.
(4) The tasks of the State Plan for the Development of Science and Technology, addressed in economic organisations, will be covered by the State budget. In addition, subsidies from the state budget will be granted to economic organisations in particular in cases where such subsidies significantly increase the pace of technical development in several fields and where the relevant production unit cannot bear the costs and risk of research development work itself, as well as the tasks of establishing structural changes in the fields. Subsidies will be provided to the solving organisation or the realtor, or both, either back or back.
(5) For the tasks of the State Science and Technology Development Plan, for which there will be an exceptional social interest in an accelerated solution, exceptional target bonuses or exceptional additional remuneration for successful resolution will be provided. The target premiums and additional remuneration will be granted from the central reserves of the Science and Technology Fund in the form of a special-purpose allocation to the fund of the workers' solving organisation.
(6) The amount of technical development costs for enterprises' needs will be left to the decisions of undertakings which will finance these costs from the total cost of production (performance), with the possibility of accruing them in the form of future expenditure. In the event of a shortage of own resources, the Czechoslovak State Bank may grant a loan.
(7) A technical development fund will be set up at the branch offices.
(1) Following the long-term uniform gross income contributions, centrally managed price and price developments will take into account the distribution of extraordinary pensions to the supply / demand ratio, in order to create assumptions for eliminating inconsistency between supply and demand by redistributing work in the national economy, creating additional sources of accumulation, etc.
(2) The central pricing policy will be based on a long-term and implementing plan for prices and price level regulation, implemented through price categorisation, regulated price level agreements, etc.
(3) Economically unfounded differences in turnover tax rates as well as differences between foreign and internal prices will be gradually reduced and eliminated. In doing so, the turnover tax will be used as an instrument of pricing policy not only to ensure a link between retail and wholesale prices, but also to ensure links between wholesale prices in cases where the effectiveness of the change in wholesale prices to suppliers and customers needs to be differentiated. From 1 January 1967, the same rates of turnover tax in both the state and cooperative sectors will be applied to all products; in economically justified cases, time-limited discounts or derogations from uniform rates shall be fixed in advance.
(4) The assumption of economically justified price developments is the creation of economic conditions in which producers will be forced to comply with the plan for expected price developments. Such conditions will need to be gradually secured:
(a) in particular by competing imported goods and creating conditions of competition between producers;
(b) a policy of regulating economic instruments to improve the efficiency of foreign trade, an effective tax, credit and financial policy.
(5) It cannot be assumed that sufficient economic assumptions will be created in the first years of the introduction of the new management system to ensure economically justified price developments. For these reasons, the central authorities will also use direct measures to ensure price developments, including a differential determination of price movements, by a price development plan, as a system of uniform levies, it is necessary, in particular, that the uneven development of profitability by industry and industry is adequately reflected in prices and that price levels are not removed from the socially necessary costs in the long term. However, direct price management will respect the need for consistency between supply and demand in all areas of the national economy.
(6) The differentiated price policy must regulate not only the ratio of demand to supply, but also the uneven development of pensions between sectors and sectors of the national economy. At the same time, in the context of price policy, the differentiation in the level of VHJ's pensions will need to be increased according to the profitability of production relative to foreign prices, thus accelerating the pace of the development of profitable production. Thus, it is not a full drain on the growth in profitability by price adjustments, but only to offset the uneven development, given the objectively uneven development of social productivity and the preference for efficient production.
(7) During 1967, price adjustments will be made, which will result in adjustments to the price levels of product groups, as well as the production and market ratios. In principle, the consequences of these price adjustments will not be balanced.
(8) Greater deviations from the assumptions of the general adjustment of wholesale prices will be addressed during 1967 either by adjustment (correction) of prices, in particular for final products, or by turnover taxes or by additional levies.
The development of Slovakia and the areas will be ensured as follows:
(a) direct decisions on the deployment of basic development capacities by the government, addressing the deployment of centrally assessed buildings by the State Planning Commission and the State Technical Commission (in cooperation with the SNR authorities) and establishing specific principles of investment policy, together with the identification of indicative indicators for each year;
(b) by establishing the volume of investment credits following the plan envisaged by development projects. This amount of credit is determined by the government in an indicative manner within the framework of the five-year plan, for the CSSR in total and in addition for Slovakia in particular; specify it during the implementation of the five-year plan. In this way, the loan will ensure that the relationship between material and financial resources is regulated and will facilitate investment placement with respect to the same economic efficiency throughout the country. These loans are based on the volume of investments foreseen in the plans.
(c) in the selection procedure, uniform selection criteria shall apply for the selection of investments; at the end of Stage 1, investors' credit requirements (for CSSR and of which Slovakia) shall be identified and compliance with the plan of expected proportions shall be assessed. On this basis, the amount of credit for the CSSR will then be established and of this for Slovakia, in order to achieve policy-economic objectives in order to further accelerate the development of the economy in Slovakia. Loans for Slovakia are managed by the State Bank of the Czechoslovak - Regional Institute for Slovakia, which will participate in the preparation of the credit plan and selection procedure, while respecting the national principles of credit maturity and efficiency criteria.
(1) Economic instruments referred to in the following paragraphs are used to ensure the development of less developed areas and to regulate the development of agglomerated areas.
(2) For the construction of economic organisations with full application of the new system of management and construction of production cooperatives, launched from 1 January 1967 in the following areas (district, part of district, city), subsidies from the State budget, amounting to 15% of the budget costs of the investment, shall be granted within the limits of the pre-defined national budget (broken down into CSSR and Slovakia). The State budget subsidy is drawn according to the actual implementation of investments in the designated actions.
(3) In order to offset the increased operating costs of the plants or plants for which the State budget subsidy referred to in paragraph 2 will be granted for a period of 5 years, discounts shall be granted from the residual price of the basic funds. The discount is determined by reducing the generally fixed 1 / 3 percentage rate of contribution, i.e. from 6% to 4%.
(4) The subsidies and discounts provided for in paragraphs 2 and 3 are granted in the following areas (districts, districts, cities):
in the region of West Slovakia
Southern District of Left
from Dunajská Streda: Dunajská Streda and Chalovo
from Komárno district: Kolárová
from the district of Nové Locks: New Locks
in the Central Slovak Region
from Banská Bystrica district: Horehroni district
from the Kreis of Rimavská Sobota: Rimavská Sobota
from Zvolen county: Krupina
From the county of Čadca: Čadca
in the Eastern Slovak Region
North-eastern part of Humenné district
Bardejov district (outside the cities of Bardejov)
Southern part of Trebišov district
from the Kreis Michalovka: Sobrance
Northwest part of Prešov district
North-eastern part of Poprad district
from the district of Spišská Nová Ves: Hnilecká Dolina
from the district of Rožňava: northern part
in Czech regions
selected cities in border counties of category A:
Chaplice, Vimperk, Lenora, Horshov Týn, Aš, Silver, Bruntal.
(5) The selection of areas (district, part of district, city) will be specified in the final draft of the 4th Five-Year Plan during 1967. However, the adaptation of the list of beneficiary areas will only apply to newly launched actions; actions which have been set up or already carried out shall be assessed on the basis of the state at the time of their commencement.
(6) Taking into account the sectoral and regional aspects and the labour situation, the Regional National Committees, in cooperation with the ONV, or the currency, and with the approval of the State Planning Commission, may provide for a premium for the stabilisation levy provided for in Article 5 up to 2% of the total amount of paid wages paid by the county workers or the place for which the premium was fixed. The premium on this levy may only be fixed for areas or places where there are greater differences between resources and labour needs or where a total reduction in the number of workers is to be expected.
(7) The allowances for the stabilisation levy shall not be applied to commercial and paid-service organisations to the population and to construction organisations. The mark-up can differentiate the KNV to ensure the effective development of the workforce structure in relation to resources (male-female).
(8) The Government lays down binding rules governing the competence of the national committees in determining the allowances for the stabilisation levy.
(9) When constructing new and expanding existing production plants, investors are required to indicate in the investment plan (investment task) - in agreement with the relevant national committee - the costs needed for the investment (additional), in particular in sections managed by national committees. When assessing variants of construction, the central authority, if it is a centrally assessed construction, or another evaluating authority, shall take into account the cost of the (complementary) investment in each variant. The Government may declare the areas in which the principle that the competent national committee shall determine the amount of the contribution which the investor is obliged to transfer to the national committee's budget to cover the additional investment needed.
(10) Undertakings are obliged to pay fees and fines for environmental degradation from their own resources. Specific measures in this respect shall be laid down by the Government by decree on a proposal from the State Technical Commission.
(11) In addition, branch-controlled enterprises contribute on a voluntary basis to the construction of facilities which serve the workers of their plants and establishments (e.g. crèches, nurseries, medical facilities). As a general rule, the National Committee responsible shall pool such contributions with its investment means to ensure the comprehensive construction of such facilities. Undertakings may also contribute to the operation of such facilities.
The State budget will no longer cover some of the special-purpose expenditure of enterprises, such as interest-free housing loans, subsidies for the prices of technically progressive products, premiums for the Red Battalion (not related to the Red Battalion, granted by government decisions and by the ÚRO), exhalation damages, and other non-investment expenditure still earmarked from the State budget. The expenditure covered by these subsidies (special-purpose financing) will, in the future, be paid by enterprises from their own resources.
(1) The specific specificities of the non-industrial sectors in the area of pricing and composition, in a variety of activities, in different organisational forms and in the performance of other non-economic functions require that the transition to the general economic regime (applied to industry, construction and trade) be carried out in accordance with the conditions created. Therefore, from 1 January 1967, either a general management system with a number of deviations or different forms of experiment will be applied in these organisations.
(2) The following principles shall be laid down for the non-industrial sector scheme as from 1 January 1967:
(a) in all cases where sufficient assumptions are made, a general system of management, levies, material interest and financing of investments will be introduced. In justified cases, divergent rates of levies may be proposed to the Government for the time being;
(b) in sectors and organisations where the financing of investments from loans and own resources cannot yet be applied, an effective wage regulation regime must be established;
(c) industrial, construction and commercial undertakings and separate project organisations have, in principle, an economic and material interest regime applicable to these sectors, irrespective of where the central authority or production unit is organised; the distribution and supply organisations are subject to an industrial (or construction) business regime; exemptions shall be provided for where the sales or supply increases and reductions are adjusted according to the principles applicable to the trade margins;
(d) propose an economic and material interest regime for foreign trade undertakings by the Ministry of Foreign Trade;
(e) undertakings for transport and agricultural activities, incorporated in industrial or construction production units (or departments), have a management scheme which corresponds to the relevant non-industrial (non-construction) activity;
(f) retail outlets of manufacturing undertakings are subject to internal trade conditions. The stocks of these retail outlets do not pay a 2% contribution to the state budget, the basic resources of these retail outlets are subject to a reduced rate of payment, etc. The difference between the gross income (profit) rates in industry and in internal trade is offset by the additional levy. Details shall be laid down in the implementing rules; *)
(g) in all non-industrial sectors and in those where a particular management or experimentation scheme has already been approved, the central authorities must re-examine the management system in such a way as to bring it closer to the general management system as from 1 January 1967;
(h) in justified cases, the central authorities may, as an exception, propose to the government a derogation from the principles referred to in (c) and (e). A different solution for non-independent project services and non-independent research and development base sites may be established by the State Technical Commission.
The provisions referred to in Articles 1 to 19 shall relate to the management conditions after 1 January 1967 and shall not affect the conditions applicable for 1966. This year's results will therefore be left to production units and businesses to be used according to the applicable regulations and will not be drawn into the state budget.
*) The framework conditions for the management of cooperatives are determined by their central associations; the relationship between production and consumption cooperatives and the State budget is determined in particular by the Cooperative Pension Tax Act and the Act establishing the obligation to carry out the stabilisation levy.
* *) Other project services are subject to the same management conditions as the organisations of which they are part, except those which, with the approval of the State Technical Commission, will exceptionally comply with the conditions applicable to separate project organisations.
*) Calculation of the stabilisation levy shall be made according to the following formula: total contribution = 0,3 x (volume of wages paid - number of workers x planned annual average wage in 1966 x 0,9) + volume of wages paid x annual increase of staff in%: 100. The amount of wages paid and the number of workers shall be understood as the year for which the levy is calculated; In 1967, however, the annual growth rate of workers will be determined against the situation planned in 1966 (in the State Plan and its breakdown or additional breakdown for enterprises carried out for this purpose) - the starting point cannot be considered as a starting point for the figures shown in the business plans, if they differ from that of the State Plan. Detailed provisions shall be laid down in the implementing rules.
* *) Including disability cooperatives.
*) It also applies to enterprises which, in the context of approved economic experiments, financed investment in 1965 in a similar way.
*) This also applies to contributions from basic resources.
*) Similar provisions concerning sales of production cooperatives and sales of consumer cooperatives in cities will need to be included in the tax treatment of cooperatives' pension tax (since this tax is based on the level of commercial activity costs in rural areas).
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Regulation Information
| Citation | Other legal act Approved by Government Resolution No. 63 / 1966 Coll., Framework Conditions of Business Management, Approved by Government Resolution No. 242 |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.08.1966 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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