Food stamps in Moldova will not be canceled, they will be deprived of the former preferential tax treatment, - the Ministry of Finance.

Food stamps in Moldova will not be canceled, they will be deprived of the former preferential tax treatment, - the Ministry of Finance.

This was stated by the Ministry of Finance, speaking with clarifications regarding the impact and rationality of the decision on food stamps. The Finance Ministry stressed that food stamps will not be canceled, and the legislative changes proposed by the department are aimed at changing the tax regime applicable to food stamps, which should be subject to taxation in general, with the payment of compulsory social and health insurance and income taxes. The ministry explained that food stamps represent a salary that does not contribute to medical, social and pension benefits. Currently, about 30 thousand people receive food stamps, which are issued by 620 employers. According to the Ministry of Finance, by simply transforming a salary card into food stamps, there is a very high risk that in 2020 a fund of almost 1 billion lei will be formed, from which social and medical insurance contributions will not be paid. This threatens the sustainability of the state social insurance budget. The financial department called it important that any measure, including food stamps, be introduced in a situation where budget parameters allow it. However, as noted, the introduction of this measure at the same time as the comprehensive reform of reducing the share of contributions to the Social Fund was extremely risky for fiscal sustainability. Against the background of the tax reform of 2018, compulsory social insurance contributions have declined. Thus, measures affecting budget revenues, and in particular the state social insurance budget, threaten the sustainability of the social insurance system. The amount of approved transfers from the state budget to cover the state budget deficit of social insurance in 2019 will be about 2.84 billion lei against 1.11 billion lei a year earlier. As noted in the Ministry of Finance, in these difficult budgetary circumstances, it is important to quickly and immediately respond to policies that affect the revenues of the state social security budget. "This measure is responsible, aimed at ensuring the future of citizens, as well as the sustainability and proper management of the social insurance budget, which is one of the priorities for the Ministry of Finance," the department said. // 24.07.2019 — InfoMarket.

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