Moldovan Parliament passed in the first reading the Draft Fiscal Policy for 2024.
As noted by the Minister of Finance Veronica Sireteanu, the objectives of fiscal policy are to create a coherent, fair, efficient and simple tax system, ensuring the mobilization of budgetary resources needed to finance sustainable development tasks. The draft law envisages tax tools to attract and retain skilled labor; revision of mechanisms for calculating and paying taxes and fees in order to simplify and clarify the legal framework, prerequisites for countering "envelope salaries", measures to improve tax administration, etc. At the same time, other fiscal policy measures are aimed at clarifying the existing ambiguities in the fiscal legislation and introducing greater clarity in its understanding and application. Also, the bill aims to continue the process of harmonization of national legislation with the legislation of the European Union, as a matter of priority, in the part relating to VAT and excise taxes. Among the specific measures proposed are expansion of the range of tax exemptions and revision of the categories of employers' expenses in favor of employees allowed for deduction for tax purposes. The Draft Fiscal Policy for 2024 proposes expanding the categories of deductions for individuals in establishing income tax liabilities by expenses related to optional health insurance premiums or under a health services contract, expenses related to premiums under a life insurance contract. Individuals will also be able to deduct interest payments related to mortgage loans up to the average wage in the economy. The document also provides for the unification of tax rates on personal income withheld on investment and financial income, setting them at 6%. The purpose of this measure is to stimulate the investment of savings accumulated by individuals by applying a single regime to all of these incomes. At the same time, the draft fiscal policy for 2024 envisages keeping the rule of setting excise rates for 3 years in order to ensure the principle of predictability for the business environment, as well as to have a clear forecast of budget revenues. Thus, excise taxes on excisable goods, including cigarettes, cider, some oil products, are expected to increase by 7% annually over the next 3 years, except for some categories of goods, such as liquefied gas, fuel oil, beer or alcohol. In order to fulfill the commitment to harmonize fiscal and customs legislation, the tax regime applicable to passenger cars will be changed by imposing VAT on a common basis as of January 1, 2025, with a gradual reduction of the excise duty rate. The chairman of the Economy, Budget and Finance Commission, Radu Marian, praised the fact that the fiscal policy for the next year was presented so early in the budget calendar, and it offers the business environment and employers predictability in the implementation of activities. At the same time, this fact allows for widespread public discussion of the bill with all interested parties, up to and including its final reading. // 30.06.2023 – InfoMarket
