Moldova May Drop 20% VAT Plan on Medicines After Criticism
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The Ministry of Finance is prepared to back down and abandon the 20 percent VAT on medicines

The government appears to be ready to back down and abandon plans to impose a standard 20% VAT rate on medicines and medical supplies as part of the tax reform proposed for 2027. Finance Minister Andrian Gavrilita made these statements following a wave of criticism and a negative assessment from the Ministry of Health.
Svetlana Rudenco Reading time: 1 minute
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Gavrilitsa made it clear that the authorities would not insist on implementing this measure if it did not receive support. He explained that the original goal was to improve the efficiency of resource use by eliminating general benefits.

“The intention was by no means to harm the healthcare sector—quite the opposite. We believed that when a benefit is applied across the board, the benefits do not necessarily go where they are most needed, but the funds themselves were certainly supposed to go to healthcare anyway. We expected that our colleagues would be able to reallocate or direct these resources more effectively. “If there is no such desire or ability, we certainly won’t insist, because we have absolutely no intention of causing harm or reducing citizens’ access to medical services or medications,” Andrian Gavrilita said.

This reaction followed a tough stance by Health Minister Emil Ceban. He publicly warned on national radio that imposing a 20 percent value-added tax on medical products risks destroying the Republic of Moldova’s healthcare system and triggering a chain reaction of price increases. The minister argued that such a change in tax legislation would lead to a sharp increase in hospital expenses, higher drug prices, and would put enormous pressure on the budgets of medical institutions. In conclusion, he emphasized that the country is not ready for such radical changes.


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