Prime Minister Vasily Tofan made this statement while issuing relevant instructions to Finance Minister Victoria Belous. The head of the Cabinet noted that this document will be drafted following consultations with stakeholders and must be submitted by August 6. Vasilii Tofan acknowledged that tax reform is a complex issue, and that the first attempt at tax reform, to put it mildly, was not successful and was bound to fail. The Prime Minister acknowledged that the tax reform was launched at an extremely inopportune moment, during the scandal surrounding the MoldATSA enterprise. The Prime Minister said that the current government must call a spade a spade, not shy away from difficult issues, and carry out tax reform. “We must lower taxes on labor and reduce taxes on investment to encourage more people to work and invest. But these reductions must be offset by other sources. We will likely have to offset them through excise taxes—on tobacco, alcohol, gambling, and other goods. These rates are easier to adjust. The excise tax on diesel fuel is a complex issue, but in that case, we’ll return the money to farmers,” explained Vasily Tofan. According to him, value-added tax is a separate issue that will be considered. “We’ll likely have to revisit the issue of VAT as well. I heard the feedback last time, understood it well, and believe we should take it into account as much as possible. Nevertheless, we need to take certain steps toward unifying VAT. Perhaps gradually, rather than immediately raising it to 20%. It will likely be a phased increase. This is a sensitive issue. Therefore, I ask the ministers not to make promises about what will or will not happen,” said Vasily Tofan. He instructed Finance Minister Viktoria Belous to present a draft tax and budget policy by August 6. “I take responsibility for this reform and will be personally involved in its development. I am not placing the entire burden on Finance Minister Viktoria Belous; I will participate very actively and believe that we must work as a single team,” said Vasily Tofan. // July 22, 2026 – InfoMarket.