Moldova exempts from customs duties the supplies of goods and services for the implementation of the Energy Saving Credits (ESC) loan program.
This is stipulated in the draft of the relevant law, passed by the Parliament in the second reading. The draft law concerns the procedure for applying tax and customs exemptions on imports and/or supplies of goods and/or services for the implementation of the Energy Saving Credits (ESC) loan program, financed and implemented by the Nordic Environment Finance Corporation (Nefco - Nordic Environment Finance Corporation). According to the document, in derogation from the provisions of the Tax and Customs Codes, the Law on Customs Tariff, the Law on Approval of the Combined Commodity Nomenclature and the Law on Environmental Pollution Charges, it is proposed to exempt imports of goods and/or services intended for the implementation of the Energy Saving Credits (ESC) loan program financed and implemented by Nefco from non-deductible VAT, excise duties, customs duty, customs procedure fees and charges for goods that pollute the environment in the process of use. Supplies of goods and/or services intended for the implementation of the said program will be exempted from VAT with the right of deduction, excise duty and levy for goods that pollute the environment while being used. The procedure for applying the relevant tax and customs exemptions will be established by the government. The law will enter into force from the date of its publication in Monitorul Oficial (the Official Journal of Moldova). "VAT exemption will reduce the cost of financing projects implemented by local authorities, which is especially important in the case of localities whose own revenues are limited," said the authors of the bill, PAS faction MPs Radu Marian and Ina Coseru. The Energy Saving Credits (ESC) loan program is financed and implemented by Nefco. Through it, Moldovan authorities receive financing for energy saving projects for public institutions - schools, kindergartens, hospitals, social centers - and for street lighting projects. The bill is to be approved by parliament in the second reading. Nefco (Nordic Environment Finance Corporation) was established in 1990 by 5 Nordic countries: Denmark, Finland, Iceland, Norway, Denmark, Finland and Sweden. // 21.09.2023 – InfoMarket
