The document is designed as a by-law following the entry into force of Law No. 75/2025 granting tax incentives to this project.
The draft decree provides for the procedure of exemption from VAT without the right of deduction, excise, customs duty, tax on goods that in the process of use pollute the environment, when importing and/or supplying them for the implementation of the project for the restoration of the Byk River.
The recipient of such goods will have to present to the customs authority a letter on official letterhead from the Chisinau City Hall, a tax invoice and a copy of the contract of sale of the goods.
The exemption from VAT, customs duties and fees for customs procedures contributes to reducing the financial burden on the capital’s budget, avoiding the allocation of additional funds to cover these expenses, the explanatory note says. At the same time, the estimated budgetary effect of VAT exemption will amount to about 1.6 million euros.
The rapid realization of the project on the restoration of the river Byc can improve the quality of life in Chisinau, which will indirectly stimulate local businesses, including tourism, urban development and trade. Improved infrastructure and reduced flood risk will help to attract additional investments to the neighborhood.
Implementation of the project will create a more favorable environment for the residents of Chisinau by improving access to quality infrastructure. The restoration and improvement of the Bull River will reduce health risks and improve the living conditions of approximately 100,000 people affected by flooding and pollution, and indirectly contribute to the creation of new jobs.
The rehabilitation project of the Bull River is implemented by the Chisinau City Hall with the support of the EBRD and the Green Climate Fund. The total budget is €21 million, of which €4 million is a non-refundable grant.
