The PSRM draft provides for a reduction of VAT on gasoline and diesel fuel to 10%, while the initiative of deputy Marc Tcaciuc – halving excise taxes on these products until the end of 2026. The authors argue that such measures are necessary to reduce the pressure on the population and the economy against the background of rising energy prices.
However, the parliamentary majority in the commission rejected these proposals. PAS MP Radu Marian, citing experts and the IMF, said the total budgetary effect could amount to about MDL 3.4 billion, while such measures “could have the opposite effect” by stimulating consumption and keeping prices high.
“Usually, when prices rise sharply, people start saving money – they use public transportation more, cut expenses. If taxes are reduced, on the contrary, we stimulate consumption and actually help those who already consume more – those who have a more powerful engine. The result is a spiral that keeps prices high. This is why most experts recommend targeted support measures for the most vulnerable,” Marian said.
“Call out the list of experts.”
The opposition does not agree with such arguments and gives examples of European countries. According to Mark Tсaciuс, a number of states have already reduced taxes to curb price increases.
“There are concrete examples. In Poland VAT was reduced from 23% to 8%, in Spain – from 21% to 10%, in Italy excise duties were reduced by about 20% for diesel and 15% for gasoline. Slovenia reduced excise duties to the minimum level allowed in the EU, and Romania reduced excise duties on diesel and extended compensation for transport operators. What do we see in practice? In the EU, the increase in diesel prices in the worst case amounted to about 35-36%, and on average – about 23%. In Moldova, the increase was about 23% for gasoline and up to 48% for diesel,” Tcaciuc said.
PSRM deputy Alla Ursu-Antoc also criticized the authorities’ arguments, questioning the reference to “experts”.
“What experts are we talking about? International ones or those who in Moldova are financed by European funds, create NGOs and do not understand the real situation? Look at the practice of other countries – and these governments of these countries are no worse than in Moldova,” she said.
The government, in its turn, claims that it already has mechanisms for regulating fuel prices and relies on targeted support measures.
“We have mechanisms to limit fuel prices. There is a calculation formula, thanks to which prices in Moldova are lower than, for example, in Ukraine, and much lower than in Romania. We are already applying protection measures. At the same time, the situation is extremely unstable. We live in conditions where everything can change at any moment. We have already started supporting farmers and, if the situation worsens, we will consider targeted measures for other areas as well,” Radu Marian emphasized.
Recall that on the same day, April 29, PAS presented its own draft law aimed at strengthening the state’s ability to respond to energy crises.
