The government approved a draft law that envisages the creation of a Convergence Fund. Its resources will be used to gradually eliminate tax and legislative differences between the two banks of the Dniester. It will be formed by taxes on economic entities from the left bank, in particular on goods and services consumed by citizens, and will be used to modernize the infrastructure, support the business environment and residents of the region.
“The Convergence Fund is created on the basis of ensuring uniform rules on both banks and competitiveness between them. The goal is not to raise more funds, but to provide equal rules. When the funds collected become final, for example, from consumption on the left bank, this money will go into the fund with the aim of investing for the benefit of citizens and communities on the left bank. The goal is not to collect something for the right bank, but to guarantee equal rules and make sure that the left bank is not taxed more than the right bank,” explained Finance Minister Andrian Gavrilica.
He specified that the government will elaborate a plan until 2030, which will allow implementing these measures “gradually, correctly and taking into account all the refund mechanisms, with the most consistent and constructive policy”.
CCI is ready to help
It should be noted that the Chamber of Commerce and Industry (CCI) is the only association in the Republic of Moldova that has a branch on the left bank of the Nistru River. It unites more than 70 companies.
CCI President Sergiu Harya warned that there may be problems in implementing the project, at least at this stage.
“In the region there is no VAT in the Tax Code, there is a turnover tax. For me, as an accountant, these are debit and credit issues. There will also be a problem with VAT reimbursement and its deduction for economic agents in the region. Therefore, it is necessary to hold additional consultations with local authorities to avoid the situation when entrepreneurs do not understand how to work with the new system,” Kharya said at the Cabinet meeting.
The Chamber of Commerce and Industry offered its platform for explanations and discussions with the business community of the left bank.
The finance minister promised that the government would “work in a very constructive, friendly manner and oriented to the experience of citizens and businesses from both banks.” “We can’t go to the European Union when some know what VAT is and others don’t.”
At the same day the project was discussed by deputies in the specialized parliamentary commission. It was noted that the first tax exemptions for companies on the left bank will be canceled this year – for socially insignificant goods, such as alcohol. Once the bill is passed and implemented, VAT and excise taxes will apply to the import and sale of these goods in areas on the left bank, as in the rest of the country. The full implementation of these measures is expected to bring additional revenues of about 3.3 billion lei per year to the state budget.
VAT exemptions on electricity and natural gas supplies for companies that do not operate through Moldova’s budgetary system, including supplies from SA Moldova-Gaz to SRL Tiraspoltransgaz, will also be canceled. These changes are planned to be introduced from June 1, 2026.
It is assumed that these measures will finally enter into force on January 1, 2030.
