The Ministry of Finance proposes to cancel food stamps from 2020, to return the 20% VAT rate in the HoReCa sphere, to increase taxes on plastic, etc.
Finance Minister Natalia Gavrilita at a press conference on Tuesday presented the main tax policy measures that the department had discussed and agreed with the International Monetary Fund. She noted that her department’s task was to ensure budgetary stability and income levels, allowing to cover staff costs in the public sector and other social expenses. According to the minister, some measures were proposed in order to cancel the “bad” decisions of the previous government, which contributed to smuggling and other violations; other measures are aimed at abolishing certain tax benefits; Another part of the amendments is expected to contribute to tax justice, so that people with high incomes pay more taxes, and tax policy measures do not affect socially vulnerable categories of the population. In particular, the Ministry of Finance proposes to annul the tax benefits provided in the field of gambling and indulgences provided for the implementation of public-private partnership projects from 2020. Food stamps will be canceled, since this type of activity is not focused on citizens and is a way of lowering the taxable income of economic agents. It is planned to cancel the preferential VAT rate (10%) for the HoReCa sector (hotels, restaurants, cafes) and set a standard rate of 20%. It is also planned to increase the tax rate on environmental pollution by 50% on plastic. The Ministry of Finance will also promote the abolition of the moratorium on tax audits as of January 1, 2018. The application of income tax will be introduced in cases when the STS has revealed incomes in the amount of up to 500 thousand lei by indirect methods - a kind of amnesty is currently in effect categories of taxpayers. Another measure for expanding the tax base will be an increase in the capital gains tax rate - by 100% for legal entities and by 50% for individuals. Persons with high incomes are revoked the right to receive personal exemption from income tax: in particular, physical persons, whose annual income exceeds 360 thousand lei, may lose the right to annual personal exemption. In addition, the Minister of Finance recalled that the government has already taken some measures, they are being considered in parliament and will take effect from the moment of publication. It is about banning the activities of duty-free shops at the entrance to Moldova and in the territory of Transnistria; exclusion of the right to sell oil products in the duty-free mode; the establishment of an excise tax on some tobacco products. Speaking about the change in the income tax rate, Gavrilita assured that in 2020 it will remain at the current level (12%). According to the Minister of Finance, by the end of this week the package of the above amendments to the legislation will be approved by the government, next week the bill will be adopted by the Parliament. In addition to the package of legislative changes agreed with the IMF, according to Gavrilita, the Ministry of Finance began consultations with the business community on tax policy for 2020 in order to approve it on time - before the end of this year. “We strive to provide favorable conditions for doing business and ensure the predictability of tax policies,” the Minister of Finance stressed. // 23.07.2019 - InfoMarket.