07 08/2018

New business reforms presented to economic agents of Moldova

There were analised new reforms for business environment in Moldova today at a meeting attended by representatives of the Ministry of Economy and Infrastructure (MEI), Ministry of Finance (MF) and small and medium .

The Minister of Economy and Infrastructure, Chiril Gaburici, said that the business environment needs authorities to ensure clear rules of play for all economic agents, clarity about possibility of developing business and respecting the law by all.

The Minister specified the steps undertaken by Government as to improve business environment. "We already have a smaller list of permissive acts, we have a smaller number of control organs, we have single window, launched last month. Additionally, we came up with a package of laws to help business. Pro-business reform is an oxygen bottle that the business environment needed to regain confidence in what it can do at home," said Chiril Gaburici.

State Secretary of MF, Ion Chicu, said after crisis of 2014 – 2015, the economic and financial situation has stabilised and economic growth and investments in economy have returned to Moldova's characteristic corridor for recent 10 years. However, according to Chicu, these recovery rates do not ensure a significant increase in living standards of population, and the country faces comparative investment disadvantages at regional level.

The Secretary of State for Finance also provided details about the fiscal change package promoted by Government. It provides, in particular, for a waiver of the progressive income tax system and a flat rate of 12 per cent. Chicu said that Moldova is the last country in the region where it was implemented progressive system. The neighbouring country Romania introduced a flat tax on income tax of 10 per cent starting the beginning of 2018.

Chicu also explained how to make calculations in the context of changing quotas during the tax period. "For the first nine months of the year, there will be in force current quotas and exemptions. It will be divided into 12 and multiplied by 9 months. For the 4th quarter, new quotas will be divided to 12 and multiplied by 3," specified the State Secretary for Finance of MF.

The legislative package on tax reform was adopted by Parliament on 26 July 2018. The reform aims to stimulate business environment, increase income of population, reduce shadow economy, envelope wages, tax evasion and undeclared income.