Business has identified a number of serious problems in the draft fiscal policy for 2023.
At a meeting of the National Business Agenda platform on Wednesday, in particular, noted that the proposed differentiated rate of VAT in agriculture undermines the basic rules of market competition and encourages imports from regions or countries with lower VAT. Businesses believe it is necessary to adopt a single VAT rate for the entire value chain in agriculture in Moldova, where 40 percent of household spending is on food. Among the problems is the increase in the excise duty on alcohol and tobacco products to a much higher level than in the current calendar established by law. Reducing from 100 thousand to 10 thousand lei the maximum limit on purchases in cash from individuals will suspend the work of some sectors of agriculture, given that half of the agricultural activities account for individual farms. Entrepreneurs are asking for a temporary abolition of customs duties on imports of raw materials, which are currently purchased from the EU, where prices are higher, given the war in Ukraine. The participants of the discussions believe that the concept of transfer prices, proposed by the document, is premature and untimely, against the background of its extreme high cost and lack of methodological rules for the calculation, high penalties in case of non-compliance instead of corrective solutions. Businesses also believe that the patent holders have had years to transition to other platforms of entrepreneurial activity, so the extension of the duration of patents for another six months (until July 1, 2023) continues to support unfair competition in the market. Entrepreneurs consider discriminatory the fact that civil servants can receive a compensation of 3000 lei in winter time, while for businesses this benefit is not provided. One of the main problems is that the document gives any tax inspector the opportunity to re-categorize transactions during the audit, which is a gross violation of the Civil Code - the cornerstone of any business contract. Businessmen expressed bewilderment that there is nothing in the fiscal policy to expand the tax base, which would bring more money into the budget, and there are no measures to stop the outflow of labor from the country. The business community expressed the willingness to organize working tables with government officials to improve legislation and create conditions for healthy and sustainable economic development and growth in a predictable legal framework that encourages real competition without discrimination. // 24.11.2022 - InfoMarket.
