Moldovan government approves budgetary, fiscal policy for 2021

Chisinau, 30 November /MOLDPRES/ - The government, at a today’s meeting, approved the draft law on the country’s budgetary and fiscal policy for 2021. The draft is to be presented to the parliament for adoption.  

Under the draft law, the measures of fiscal and customs policy for the next year are aimed at contributing to developing the national economy through backing the business environment and strengthening the budget revenues for financing the public spending.  

The main measures of fiscal and customs policy proposed for the next year refer to revising the exemptions of private people and increasing the personal exemptions; standardization of the quotas of taxation of private people’s incomes; removing the retaining of the income tax in the case of distributing the dividends between companies; revising the quotas of the value added tax (VAT) in agriculture; continuing the programme of VAT’s reimbursement for the farmers hit by natural calamities; establishing the excise duties on tobacco products, alcoholic products and oil products for a three-year period; implementation of a mechanism of subsidizing the companies of collection and recycling packing, the document reads.  

At the same time, as a result of the proposals received in the process of public consultations, the draft law on the fiscal and customs policy for 2021 was completed with the following provisions: allowing insurance companies to deduct the commissions created for covering the debts specific for the insurances sector; extending the right to deduction of the expenses paid by tax payers in form of adhesion tax and dues for all associations of representing the entrepreneurial activity worth 0.15 per cent of the labour remuneration fund; non-taxation with the income tax at a quota of 4 per cent of the incomes from non-taxable grants.  

Also, the draft sees allowing the deduct the health insurances premiums from the incomes of non-resident private people got from the activity according to the labour contract; revising the conditions of registration of the contracts on the rental of real estate from private persons to private persons, as well as the term of payment of the bond (presently, it is paid in advance, it is proposed till the date of 25 of the month); reducing the VAT quota from 15 to 12 per cent for the HORECA sector; diminishing the contribution from 2.5 to 1.5 per cent from the income of the sales related to the mobile telephony services starting from 2022; other proposals of improving the fiscal and customs legislation.   

„The draft is a joint product of all those who are interested in the country to have an as good as possible budgetary and fiscal policy in 2021 for the situation in which we find ourselves. The government comes up with proposals which provide more instruments to consolidate the budget’s basis. I thank the entire team who elaborated and consulted the draft on the budgetary and fiscal policy in a tough year with unfriendly conditions,’’ PM Ion Chicu said at the meeting.