News about State budget and taxes

The draft budget and tax policy for 2027, in its current form, must be suspended. The changes it proposes will directly impact local budgets.

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.

Representatives of the Chisinau City Hall are insisting on the lifting of restrictions on local taxes, the fair refund of taxes collected by the municipality, and financial support for the powers delegated to local authorities.

The Supreme Council of Prosecutors (SCP) and the Supreme Council of the Judiciary (SCJ) have commented on the draft law amending certain regulatory acts concerning the reform of the unified pay system in the public sector. Both bodies have warned of serious risks to the status, income, and independence of justice system employees.

The Promo-LEX Association presented a monitoring report titled “Political Party Financing in the Republic of Moldova: A Retrospective on 2025.” The report identified structural changes in the budgets of the 38 political parties that submitted reports, as well as a hidden shortfall in the form of undeclared expenditures.

Starting in 2026, the law will establish new rules for the administration of the sanitation fee, including the deadlines for its payment.

The “Agrocereale” Grain Exporters Association warns that two provisions of the draft budget and tax policy for 2027 could have the opposite effect of what the reform’s proponents intended.

The frequent turnover of prime ministers is increasingly becoming one of the main signs of systemic difficulties in the United Kingdom. Keir Starmer’s resignation, less than two years after a convincing victory in the general election, was yet another sign of the growing crisis of confidence in the country’s political leadership.

The Ministry of Finance proposes that the relevant provisions of the Law on Limited Liability Companies (LLCs) governing the application of the incentive capital mechanism be repealed. This proposal is included in the 2027 Tax Policy Package. 

Starting in 2027, the rules for calculating maternity benefits in Moldova may change. For some women, these benefits may be significantly lower, particularly for those who do not have sufficient official work experience.

The proposed changes to the 2027 tax policy are raising more and more questions and comments. Ion Sturza, former Prime Minister of Moldova (1998–1999), has also shared his views on social media. Here are his main points.

The Federation of Public Service Workers’ Unions (SINDASP), which represents the interests of more than 16,000 union members, expresses its concern and disagreement with the bills concerning the reform of tax, customs policy, and the wage system. The organization notes that, in addition to reducing pay scales and cutting a number of wage supplements, the government is blocking collective bargaining and restricting workers’ labor rights.

From June 15 to 21, 2026, revenue from the Customs Service to the state budget totaled more than 837.2 million lei, which is 102.1% higher than the target for the reporting period.

Over the past four years, the staff of government agencies and ministries has nearly doubled. As part of the administrative reform, the authorities are curtailing local power with one hand while expanding central power with the other.

There are approximately 170,000 public sector employees in Moldova. The Ministry of Finance assures that most of them will receive a salary increase ranging from 10% to 30% starting September 1, 2026. The main increases will apply to employees in the education, healthcare, social protection, national defense, and public order sectors.

Germany’s government budget deficit is projected to rise to 5% of GDP in 2027, according to data from the Ifo Institute for Economic Research.

The Ministry of Finance has launched an online calculator that helps employees calculate how their salaries will change following the tax reform.

On June 19, the National Tourism Office announced the launch of a new phase of grant funding for projects under the National “Sustainable Tourism” Program. The program is funded from the state budget as part of the Growth Plan for Moldova for 2025–2027 and is aimed at developing tourism.

The authorities are proposing to introduce an income tax of 3% on the revenue of the state-owned gambling operator (the National Lottery of Moldova).

The authorities are proposing to designate the construction and development of the “Moldova HiTech Park” as a public utility project of national importance. Currently, the site allocated for this project lacks the technical and transportation infrastructure necessary for the operation of a technology park of this scale.