MOLDOVAN GOVERNMENT APPROVES DRAFT OF 2021 FISCAL POLICY

On Monday evening, the Moldova Government approved the draft of the country's Fiscal Policy for the year 2021. Deputy Premier, Minister of Finance Sergiu Puscuta said presenting the document that the bill stipulates both lowering of the tax burden and new subventions for economy rehabilitation.

The draft Fiscal Policy stipulates reduction of cash circulation in the economy, leveling of the rate of the income tax, increase of privileges for real persons, reduction of the income tax for judicial sphere employees down to 12% from the current 18%, exclusion of the tax on the dividends of legal entities, reduction of the VAT on fertilizers.

The Government is projecting a gradual increase of excises on tobacco products (by 15%), alcoholic beverages (by 5%) and fuel (by 9%).

According to the Minister, the Government has achieved a compromise on establishing a 'ceiling' for local taxes.

The Government believes that the Fiscal Policy realization will bring extra 548 million lei to the Budget. The policy-proposed privileges should amount to approximately 195 million lei.