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Law No. 7 Of 29 April 1971

Original Language Title:  LEGE nr. 7 din 29 aprilie 1971

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LEGE no. 7 7 of 29 April 1971 on the organization and development of industrial activities, agricultural products processing, construction and service provision in units belonging to popular councils, agricultural, craft and consumer cooperation
ISSUER GREAT NATIONAL ASSEMBLY
Published in OFFICIAL BULLETIN no. 50 50 of 29 April 1971



EXPLANATORY MEMORANDUM In order to increase the production of material goods and services to meet the requirements of the population, socialist units and to increase export, by using more fully and efficiently the local raw materials resources and materials, labor from rural and urban localities, it appeared that necessary to take measures, as indicated by the party and state leadership, for the more sustained development of industrial activities, processing of agricultural products, construction and service provision. In order to stimulate the development of these economic activities by popular councils, agricultural production, craft and consumer cooperatives are ordered to exempt, for a period of two years, the payment of taxes related to the achievements of economic activities organised after 1 January 1971. It is also to be granted these financial facilitations and existing activities, if a volume of production of goods or services is obtained at least 50 percent higher than the achievements of the previous year, the exemption granted on a two-year period for that overrun. The income realized as a retribution of work from such activities in agricultural production cooperatives will be imposed monthly, according to the norms provided for income from salaries. At the same time, it is stipulated that the benefits made from the economic activities of production and services organized in rural areas by the communal folk councils should be used for the development of the respective activities, for the reimbursement bank loans, as well as for household and social-cultural actions. The funds necessary for the establishment and development of economic activities of production and services will be provided from the own financial means of the units or through bank loans granted under the conditions laid down in the regulations force, credits that will also be able to benefit the executive committees of the communal folk councils. For products and services subject to economic activities, regulations on how to set prices and tariffs are provided. The law also provided for the possibility for the executive committees of the communal folk councils and the cooperative units to execute under certain conditions, both in rural and urban areas maintenance, repair and maintenance. construction for their needs, for the population, as well as for state units. In order to apply these measures, the law was adopted. LEGE on organisation and development of activities industrial, processing of agricultural products, construction and service provision in units belonging to popular councils, agricultural cooperation, Craft and Consumer In order to use more complete and throughout the year of the workforce in rural and urban localities, the valorization of local resources of raw materials and materials, as well as to satisfy to a greater extent, in this way, the growing requirements of the population and socialist units with some products and services and for the increase of export, The Great National Assembly of the Socialist Republic of Romania adopts this law. + Article 1 The folk councils, the units belonging to them, the agricultural production cooperatives, the handicraft and consumer cooperatives can organize and develop in rural and urban localities industrial activities, processing agricultural products, construction and service provision, referred to in this law as economic activities of production and service provision. They will organize and develop those economic activities of production and services that contribute to the use of labor from rural and urban localities, as well as to the valorization of local resources of raw materials and materials, to obtaining products and services that have the disposal of internal or export-related disposal and if through the realized income recovers the production expenses and ensures a benefit. + Article 2 For new economic activities, provided in art. 1 of this Law, established after January 1, 1971, the economic and budgetary units benefit from the following financial facilitations for a period of two years from its establishment: a) the executive committees of the popular councils and the units belonging to them are exempt from the payment of the tax on the movement of b) the agricultural production cooperatives shall exempt themselves from the payment of the tax for the proceeds from the sale of products originating from non-agricultural activities; c) the handicraft and consumer cooperatives are exempt from the payment of the tax on the movement of goods, as well as the income tax. In order to benefit from the financial facilitations provided for in this Article, the economic activities of production and provision of new services established will be registered with the local financial bodies. + Article 3 The executive committees of the folk councils and the units belonging to them, the agricultural production cooperatives, the handicraft and consumer cooperatives benefit from the financial facilitations provided in art. 2 if they obtain from the development of existing economic activities a volume of production of goods or services at least 50 percent higher than that achieved in the previous year. Financial facilitations are granted over a period of two years, for the entire overtaking. + Article 4 Benefits made from existing economic activities of production and services, as well as from those newly established in rural areas by the communal folk councils, remain at their disposal, after deducting the amounts due for Staff co-interest, according to law. The funds constituted will be used for the development of economic activities of production and services in communes, as well as for household and social-cultural actions. The executive committees of the county folk councils and the city of Bucharest will be able to take a share of up to 20 percent of the benefits made from the economic activities of production and services organized by the popular councils communal, when they came to a higher degree of development. These amounts will be used for the purpose of establishing or developing economic activities, as well as for household and social-cultural actions in other communes in the county. + Article 5 The funds necessary for the units of agricultural, craft and consumer cooperation for the establishment and development of economic activities of production and service provision will be provided from their own financial means or from bank loans granted according to legal regulations in force. The executive committees of the county folk councils and the city of Bucharest will provide the necessary funds to establish and develop the economic activities of production and services in communes, from the benefits over the paid plan local budgets by state enterprises and economic organizations of republican interest, as well as from the budgetary reserve fund at their disposal. The executive committees of the communal folk councils will be able to use for the same purpose the receipts made from their own income, above those planned through the budgets of the communes, as well as those from the tax on buildings located in the rural + Article 6 It is authorized the banks to grant directly credits to the executive committees of the communal folk councils that establish and develop economic activities of production and service provision in rural areas, under the conditions of lending For the conduct of the current production and service activity, credits will be granted to the executive committees of the communal folk councils, with a interest of 3 percent per year. + Article 7 Banks will open separate accounts for the bookkeeping of receipts and payments on economic activities of production and services organized by communal folk councils, agricultural production cooperatives and consumer cooperatives, at their request. + Article 8 The retribution of work for industrial activities, agricultural products processing, construction and service provision of agricultural production cooperatives is made monthly, the incomes achieved by imposing according to the norms provided for wages. + Article 9 The prices and tariffs for products and services executed by the units belonging to the executive committees of the popular councils and subject to the economic activities of production and service provision in the communes shall be established by these Organs, by invoking with the beneficiaries, based on the expenses of the previous production, a benefit of up to 10 percent, as well as the established legal tax. For products and services that have unique prices and tariffs set by the central state bodies, these prices and tariffs are applied. The executive committees of the county folk councils and the city of Bucharest can delegate the competence to determine the prices and tariffs of subordinated units, for products and services of less importance made by them. The organizations of craft and consumer cooperation set prices and tariffs for products and services that are the subject of economic activities of production and services, according to the legal regulations in force. Agricultural production cooperatives can set prices and tariffs by invoking with the beneficiaries, based on the norms given by the National Union of Agricultural Cooperatives of Production, with the agreement of the State Committee for Prices. + Article 10 Executive committees of communal folk councils, agricultural production cooperatives, craft and consumer cooperatives can execute, in rural areas, maintenance, repair and construction works for the needs of state units, cooperative units and for the population, regardless of the value of the works. Agricultural production cooperatives, handicraft and consumer cooperatives can execute unlimited such works in urban areas, for the needs of cooperative and population units, and for state organizations up to The executive committees of the communal folk councils can carry out such works in the urban environment without a limit of value. The works carried out for socialist organizations will be executed in compliance with the consumer norms established according to the legal provisions in force. This law was voted on by the Grand National Assembly at its meeting on April 29, 1971, meeting out of the 435 votes cast, 433 votes in favour and 2 votes against. President of the Great National Assembly, STEFAN VOITEC In accordance with art. 57 of the Constitution of the Socialist Republic Romania, we sign this law. President of the State Council, NICOLAE CEAUSESCU Bucharest, April 29, 1971. No. 7. --------------