Maia Sandu: One-year bank tax increase will test impact on lending
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Maia Sandu on the tax increase for banks: “Let’s see if it will affect the size of loans”

The increase in the corporate income tax rate for banks from 12% to 18% does not pose a major risk to the economy, especially since the tax is scheduled to be in effect for one year. This view was expressed by the President of the Republic of Moldova, Maia Sandu.
Svetlana Rudenco Reading time: 1 minute
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Maia Sandu

Maia Sandu

“I don’t think this is the biggest risk, or at least, the fact that this tax is being introduced for one year will allow us to see whether or not it will affect the amount of credit available to the economy,” said Maia Sandu.

In her view, the proposed changes will not fundamentally alter budget revenues, but they could contribute to a more equitable distribution of the tax burden.

“I don’t think it’s such a major change that it will fundamentally alter the budget figures, but it is nonetheless a change that should harmonize taxes more, so that there is greater equity in how taxes are levied and, at the same time, generate additional revenue,” concluded Maia Sandu.

At the same time, Maia Sandu pointed out that any tax change involves certain risks.

“Sometimes the risk is that we plan for the revenue from these changes to be higher, but it may actually be lower, because behavior can change and people may consume less”, the president explained.

According to the president, the current version of the tax reform is more balanced than the initial proposal, while maintaining the same objectives: reducing the tax burden on labor and stimulating investment.

We recall that, when presenting the fiscal policy framework, the prime minister emphasized that the measure to increase the corporate income tax rate on banks by 50% will be temporary and will apply only within the framework of the fiscal and budgetary policy for 2027. According to him, such a measure is not directed against the financial sector, but rather represents an act of solidarity with society, which needs additional resources.


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