The deputies of the parliamentary commission on economics, budget and finance did not reach consensus on the draft tax policy measures agreed with the IMF.
At a meeting of the parliamentary commission on Wednesday, Finance Minister Natalia Gavrilita presented a bill introducing amendments and additions to tax and customs legislation, which are one of the conditions for resuming a program of cooperation with the IMF. She noted that the main goal of the bill is to close the "hole" in the state budget that arose as a result of pre-election measures taken in 2018 by previous authorities, to preserve all planned social expenses and investments, and also to resume financing of external partners. According to her, in the course of public consultations on certain provisions, a certain compromise was reached. For example, environmental pollution charges will increase by 20% from 2020, not by 50%, as previously planned, and food coupons provided by employers as non-monetary motivation for employees, as before, will be exempt from income tax and contributions to the health insurance fund, but social insurance contributions will be withheld from coupon amounts (18% from the employer and 6% from the employee). The previously reduced VAT rate in the HoReCa sector will be increased from 10% to 20%. During the meeting of the commission on this issue, deputies pointed out some arguments against raising VAT in this sector, since initially such measures were taken to remove this industry from the shadow sector, increase the tourist attractiveness of Moldova, and reduce prices for hotels and restaurants. The Minister of Finance expressed doubts that tax cuts could take the business out of the shadows. “Even if we reduce VAT to 0%, this does not mean that there will be no shadow economy. We need to carefully monitor what we offer business support opportunities and tax administration measures, ”she said, noting that discussions regarding what measures should be taken to promote business development, including in the HoReCa sector will continue. Recall that the bill also provides that persons with an annual income of more than 360 thousand lei will be deprived of the right to personal exemption from income tax, which is 24 thousand lei. It is proposed to apply basic taxation for capital gains: 100% for legal entities and 50% for individuals; the amount of withholding income tax at the source of payment will increase from 7% to 12%. Provisions will be excluded from the Tax Code, allowing to reduce taxable income by 500 thousand lei when assessing income by indirect methods, the ban on tax audits carried out with respect to economic agents for the period until January 1, 2018 will be lifted. Individuals receiving goods worth more than 200 euros from legal entities (B2C), will pay VAT, customs duties and excise taxes. At the same time, the current limits for the remaining categories and methods of importing goods will remain unchanged: the non-taxable limit for individuals importing goods will be 300 euros for land transport or 430 euros for air and sea transport. Having heard the Minister of Finance, the deputies of the commission expressed different opinions regarding some provisions of the bill, and some abstained from voting. As a result, the commission decided to forward the bill to the plenary session of the parliament. // 14.08.2019 — InfoMarket.