The Moldovan Cabinet of Ministers has approved the first State Aid Mechanism for investments in industry for 2025-2036
According to the Ministry of Economic Development and Digitalization, in particular, the state will return up to 60% of investments made in the following sectors to large and small companies from Moldova, which will invest in business expansion and development: electronic industry; chemical and pharmaceutical industry; production of automotive equipment and components; textile and clothing industry; construction materials industry; food industry. State aid will be distributed according to the following formula: 25% will be provided immediately in the form of grants, and 75% of the refundable amount will be allocated in the form of 50% income tax benefits. The total budget of this mechanism is at least 2 billion lei, with the possibility of expanding it in case of an increase in demand. According to the National Industrialization Program, a total investment of more than 500 million euros is expected until 2036, which will modernize the industrial infrastructure. The provider of state support is the Ministry of Economic Development and Digitalization, and in order to benefit from this support mechanism, companies must meet the following criteria: the investment must be new, the volume of investment must be at least 10 million lei, the investment must be made specifically in the manufacturing sectors. It is planned that, thanks to this initiative, Moldova will obtain concrete and long-term results: creation of stable and well-paid jobs; modernization of factories and technologies to make our industry more competitive on the international market, in order to increase the added value; balancing of economic development in all regions of the country, not only in free economic zones; reduction of labor migration by providing our citizens with stable jobs at home; new breath of the education system, ready for the creation of new jobs in the manufacturing sector; improvement of the quality of education in Moldova. Economic Development and Digitalization Minister Dumitru Alaiba said that Moldova is launching for the first time a state aid mechanism for investments in industry, in line with the European practice, and with the help of this instrument, the authorities will stimulate new investments, support business expansion and the creation of new factories, plants, new safe and well-paid jobs in Moldova. “Thanks to this state aid mechanism for investments in industry, the government's clear commitment to support Moldovan industry and investors - local and foreign - through a clear, predictable and well-organized structure, which respects European standards and is meant to bring real benefits throughout the country is confirmed,” Dumitru Alaiba stressed. // 23.12.2024 - InfoMarket.
