The Moldovan Parliament approved in the second reading the amendments repealing the provisions on the sale of petroleum products in the duty-free mode, without paying VAT and excise taxes.
In particular, amendments to the Tax Code adopted by deputies in the final reading cancel the provisions on exemption from VAT and excise taxes on imports of petroleum products with their further sale in the customs control zone, which are intended for refueling upon departure from the country, within the vehicle tank capacity. These provisions allowed the opening of the so-called duty-free gas stations. The authors of the bill abolishing the import and sale of oil products in duty-free mode at duty-free filling stations noted earlier that there is no such thing anywhere in the world and this stimulates tax evasion and unfair competition. They emphasized that although the impact of duty-free filling stations on the state budget and the oil product market has not yet been accurately assessed, the implementation of the previous law would have caused billions of lei to the budget. For example, representatives of oil companies estimated that without VAT and without excise duty a liter of gasoline would cost less by 7 lei, and a liter of diesel fuel by almost 5 lei. Thus, when selling 1,000 liters of gasoline without paying VAT and excise taxes, the state budget will lose 7,000 lei, and when selling 1 million liters - about 7 million lei. At the same time, given that the ANRE data show that, on average, more than 1 thousand tons of oil products or almost 1.3 million liters are sold at a gas station in Moldova, with the opening of only 10 duty-free filling stations, state budget losses could amount to almost 100 million lei. The authors of the bill noted that the provisions on preferential trade in petroleum products would also damage the competitive climate in Moldova, especially for agricultural producers who use petroleum products in technological processes, paying taxes. In addition, from a practical point of view, exemption from VAT and excise taxes can be granted not only to commercial units operating after the passport control zone, but also to economic agents who will have permission to create / construct specialized points for the sale of petroleum products in the customs control zone or even to economic agents outside the customs control zone. These exemptions can also motivate economic agents / individuals to carry out fictitious or economically unreasonable departure of their transport units in order to purchase fuel not subject to VAT and excise taxes, actually consuming them in the territory of Moldova. In addition, the authors of the bill noted that the provisions on the sale of oil products in a duty-free mode, without paying VAT and excise taxes, are unconstitutional, since they were approved by the parliament, even though they had a negative government opinion. And the Constitution prohibits the supreme legislative body to adopt amendments relating to the increase or reduction of budget revenues without a positive conclusion of the government. // 16.08.2019 — InfoMarket.