The central authorities’ intention to reduce and even to cancel some local taxes is a direct attack against the local democracy, thinks the Moldovan Cities’ Union.         

Deputy Balti Mayor Octavian Mahu said at a news conference at Infotag today that the amendments made by lawmakers to the Moldovan tax legislation are targeted against the local autonomies and against the administrations of cities.    

In his words, by these actions, the central leadership displays its refusal to fulfill the previously-set commitments and namely to ensure the decentralization and the development of local autonomy.  

In the result of these actions, the majority of populated areas will not receive the planned revenues and will find themselves on the verge of bankruptcy. The local administrations will be practically deprived of any material possibilities to provide qualitative services, such as street cleansing and lightning and to ensure the normal functioning of social institutions. At the same time, they will be unable to carry out programs of social and economic development of populated areas. Thus, Cahul budget will be short of 6.2 million lei, the Balti budget – of 10 million lei and the Soroca budget of 1 million lei,” thinks the deputy mayor.

He also said that the amendments providing for the reduction of local taxes had been adopted in non-transparent conditions, without any public debates and with grave encroachments of the legislative process.      

“At the same time, the draft law did not undergo the anti-corruption expertise, because the reduction of taxes carries an obvious corruption component, as it protects only the interests of large-scale businesses,” he said.

Cahul Mayor Petru Burlacu supported this statement, saying the authorities protect only the large businesses, leaving aside the small and medium-sized companies. He also voiced hope that this problem will be solved within negotiations held on the matter.   

Soroca Mayor Elena Bodnarenco said that the lawmakers did everything in a hurry, although by December 30 they could have worked and adopt a solution that would suit everyone.

Vadul lui Voda Mayor Iurie Onofreiciuc and Floresti Mayor Grigore Cojocaru also think that these amendments will negatively tell on Moldovan cities and populated areas as they will foster the development of monopolies, to the detriment of the population.