The Ministry of Finance is preparing amendments to the Tax and Customs Codes; the main changes will take effect in 2020

The Ministry of Finance is preparing amendments to the Tax and Customs Codes; the main changes will take effect in 2020

At a press conference on Friday, Finance Minister Natalia Gavrilita said that during negotiations with the IMF, mandatory steps that the Moldovan authorities should take to stimulate state budget revenues were agreed. Natalia Gavrilita pointed out that the government is in favor of predictability of tax policies, so the main changes in tax and customs legislation will take effect from 2020. Among the measures that will come into force already in 2019, she noted an increase in excise taxes on tobacco products used in tobacco heating devices. Gavrilita noted that serious discussions with the IMF on this issue there held. “When we talk about excise taxes on tobacco products, we need to understand that the companies participating in the market create stocks of tobacco products in advance. And at the time when excise taxes are introduced, the goods have already been imported. Namely in respect to this category of goods there is an economic reason to introduce excise taxes already this year,” Gavrilita stressed. Speaking about the duty-free, Natalia Gavrilita reminded that the bill has already been passed by parliament in the first reading. “We want to bring the legislation in line with the EU rules, according to which the duty-free trade regime is granted only when leaving the country by sea and air transport. We have duty-free shops everywhere, including within the Transnistrian part of the border, and at the entrance to the country by land, besides, a preferential regime for the sale of petroleum products is provided,” the minister said. Natalia Gavrilita reported that the Ministry of Finance had prepared amendments to tax and customs legislation. The project is in consultation with other central and local governments. The minister did not provide details, citing the fact that the text of the document agreed with the IMF is not public until it is approved by the IMF board of directors. She only clarified that the basis of the changes is the principle of taxation of people with higher incomes. For example, the project involves raising taxes on capital gains, abolishing personal exemption from income tax for individuals with high incomes, etc. Speaking about plans for the near future, Natalia Gavrilita noted that, besides the implementation of measures agreed with the IMF in the medium term, the priority for the government will be capacity building in the use of capital investments, since many loans and grants from foreign partners are not used properly, the recovery of assets from the “theft of the billion”, solidarity of state institutions and the creation of a predictable business environment. “The Ministry of Finance will provide support in the process of returning the assets stolen in the “theft of the billion” fraud. We must do everything possible so that the perpetrators are punished, and such thefts, which directly affect the pocket of every citizen, do not recur. At the same time, we will work on creating a predictable business environment focused on citizens and business. We will strengthen the capacity of state institutions, especially those that provide revenues to the budget - the STS (state tax service) and CS (customs service). Citizens and businesses should understand that taxes have to be paid,” Gavrilita summed up. // 12.07.2019 - InfoMarket.

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