Tax and customs policy – a document disconnected from the development needs of the country


“Although it is of primary importance to ensure conditions of economic growth and creation of a beneficial climate to develop activities by the business sector of the Republic of Moldova. The tax and customs policy is seen as a simple adjustment of the relevant legislation imposed by its need for continuous mechanical improvement. On the other hand, the tax policy represents usually the mechanism of continuous adjustment of the level of public expenditures and the amount of applied taxes in order to ensure economic growth”, considers Viorel Girbu, economic expert of the National Confederation of Employers.

Expert says that development of the national economy is prevented by the exaggerated level of taxes charged by the authorities (the level of public expenditures, including the volume of collected taxes is traditionally over 40% of the GDP), unequal and socially unjust distribution of fiscal pressure (the share of indirect taxes is highly disproportionate towards the direct taxes on income and especially to taxes on real estate), as well as to the chronic maintenance of the budget deficit.

According to Viorel Girbu authorities’ approach has not changed neither this year. “The document developed by the Ministry of Finance is disconnected from the development needs of the country and aims on insuring comfort and stability of the public sector without taking into consideration business environment. To overcome this situation the NCEM came twice with proposals to adjust country’s fiscal policy. First request aimed on essentially changing of authorities’ approach in this field. Unfortunately, he proposed the authorities have ignored changes at this stage. Second proposal aimed on the document developed by the MF representing exclusively the vision in this field of the abovementioned ministry. The CNPM presented the opinion of its members regarding the submitted project. In total, there were submitted 29 proposals to improve the project developed by the MF. Ten of them were asccepted and 5 partially accepted”, says the expert.

The CNPM considers inopportune position of the Ministry of Finance on the proposals to prefectionate the fiscal legislation developed by the CNPM and insists to revise the exposed position on facilitating the conditions of economic agents.