Production fund levy
The production fund levy (PFA) in the GDR was a transfer of the state- owned companies to the state budget. The trading fund levy applied in trading companies .
The production fund levy was introduced in 1965 as part of the New Economic System of Planning and Management . It should encourage companies to make effective use of the existing production facilities. The production fund levy was 6% on the inventory of the material basic and circulating assets, i.e. the fixed and material current assets . It thus had the character of a corporate wealth tax . An additional PFA of 6% was payable on over-plan stocks.
The PFA was last regulated in the regulation on the production fund levy of May 9, 1985. The income of the state budget from the PFA in 1988 amounted to 30 billion marks of the GDR . With the introduction of the monetary, economic and social union on July 1, 1990, the PFA was abolished.
Individual evidence
- ↑ Journal I No. 13 p. 157
- ↑ www.spiegel.de: There will be a gray area, June 11, 1990, accessed on January 18, 2017