Benefits for the left bank of the Nistru River will be canceled
Moldova plans to create a “Convergence Fund”. The funds accumulated in Transnistria as a result of the gradual abolition of tax and customs privileges existing there will be directed to it. The authorities intend to gradually cancel all the privileges enjoyed by the left bank of the Dniester since 2000.
This was announced by Parliament Speaker Igor Grosu in the context of the resumed political dialogue in the 1+1 format in Tiraspol on February 26. The meeting took place at the headquarters of the OSCE Mission on the left bank of the Dniester after a fifteen-month break.
The speaker emphasized that the proceeds will be used to finance joint projects. According to him, the measure will contribute to the economic reintegration of the country.
The relevant draft law was registered in parliament yesterday. It concerns changes to some legislative acts regarding VAT and excise duties. As one of the authors of the draft law explained of the draft law Mr. Radu Marian, chairman of the Commission for Economy, Finance and Budget, explained that some of them will come into force already this year.
As noted in the explanatory note to the document, the abolition of benefits is a continuation of the authorities’ policy to unify the tax space, which began with the introduction of a new Customs Code on January 1, 2024.
It is emphasized that the legislation allowed the enterprises from the left bank of the Nistru river to avoid paying VAT and excise duties, which is unfair. As a result, enterprises on the left bank are subsidized at the expense of the rest of Moldova. And the non-application of excise taxes on tobacco, alcohol and fuel has turned the region into a transit hub for smuggling.
The additional revenues will be managed through the aforementioned “Convergence Fund”. It is scheduled to be established as of August 1, 2026. It is planned to allocate funds from it for the needs of the residents of the left bank: modernization of infrastructure, social support and business assistance.
