The bill will be discussed this week by the Commission on Economy, Budget and Finance and then submitted for a vote in Parliament.
Tax exemptions have been in effect for more than two decades and allowed companies to avoid paying VAT and excise duties when importing goods into the region.
“This duality of fiscal space undermined the principle of fiscal uniformity. The absence of excise taxation on imports to the Transnistrian region turned it into a transit hub for goods that subsequently, especially before Russia’s invasion of Ukraine, found their way to the illegal market on the right bank of the Nistru River and even to the markets of neighboring countries,” argue the PAS deputies who drafted the project.
In their opinion, the full application of excise duties and VAT on imports is “the most effective tool for breaking the vicious circle of smuggling”.
How the money will be used
The money saved by abolishing the exemptions will go to the Convergence Fund, designed to reduce the economic and social gaps between the two banks of the Nistru River. The fund will support projects in education, health care, employment and social protection, as well as infrastructure development and business incentives.
Some provisions of the law will become effective as of June 1, 2026, in particular the abolition of exemptions from certain articles of the law on VAT and excise duties.
The bulk of the changes will come into force on January 1, 2030, which, according to deputies, will ensure a smooth transition for businesses and minimize possible economic shocks.
