PHOTO: ALAIN JOCARD / AFP VIA GETTY IMAGES
Supporters of reducing VAT on petrol and diesel from 20 per cent to 10 per cent, or applying a zero rate, believe that this measure will ensure the continuation of economic activity in Moldova, prevent bankruptcies in the agricultural and transport sectors, preserve the tax base and curb inflation.
At the same time, the government believes that such a measure could be considered if the ongoing rise in prices affects people’s purchasing power and economic stability.
Experts, however, warn that it would cost the budget billions of lei, whilst its impact on consumers at petrol stations might be negligible. According to estimates, in September 2026, additional revenue to the state budget from VAT exceeded 200 million lei.
The argument behind this position is that a reduction in the VAT rate will benefit high-income earners more, whilst other sections of the population will hardly notice the price reduction.
It should be noted that during the summer, some EU countries reduced excise duties on petroleum products (Italy, Romania, Norway, Cyprus and the Czech Republic). The VAT rate was reduced in Poland and Spain, both of which had been warned of a possible breach of the directives on compliance with the minimum VAT rate.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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