The document will be drafted following consultations with stakeholders, the prime minister promised. He acknowledged that tax reform is a complex issue, and the first attempt to implement it was, to put it mildly, unsuccessful. Moreover, it was launched at an inopportune moment amid the scandal surrounding the MoldATSA company.
The prime minister emphasized the need to call a spade a spade and not shy away from difficult topics. “We must lower taxes on labor and investment to encourage people to work and invest. But this reduction will have to be offset by other sources—likely through excise taxes on tobacco, alcohol, gambling, and other goods. These rates are easier to adjust. The excise tax on diesel fuel is a complex issue, but in that case, we will return the money to farmers,” explained Vasily Tofan.
We’ll have to revisit the issue of VAT
Value-added tax will be a separate issue. “We will likely have to revisit the issue of VAT as well. I heard the feedback last time, understood it well, and believe we should take it into account as much as possible. Nevertheless, we must move toward unifying the VAT rate—perhaps gradually, rather than immediately raising it to 20%. This is a sensitive issue. Therefore, I ask the ministers not to make sweeping promises about what will and will not happen,” Vasily Tofan added, noting that he would be “personally involved in developing” the tax policy draft.
As Logos Press previously reported, tax increases and the elimination of certain tax breaks will be unavoidable. It is not yet clear which taxes and tax breaks will be affected, but the government will not be able to avoid such measures due to the reforms already underway and the need for funds to implement them.
