Fiscal policy concept to be presented on 6 August

The new concept of fiscal policy will be presented on 6 August by the Government. Prime Minister Vasile Tofan said today that through the proposed changes, the authorities aim to tax labor less, encourage investments, tax vices more, and very carefully standardize certain taxes.

“Tomorrow we will announce the concept. That is what we promised, that is what we will do. I want to highlight some key points that will be reflected in the fiscal policy. In one sentence, the summary of this fiscal policy is as follows: we will tax labor less, we will encourage investments, we will tax vices more, and very carefully we will standardize certain taxes,” Vasile Tofan said at the beginning of today’s Government meeting.

The Prime Minister emphasized that the reform is very important and necessary, and that “it is important to set the priorities of the new fiscal reform so that we can grow the economy.”

“It is a very important reform. The first time it did not go very well. But I believe that the criticism from society, the criticism from the business community, was painful. I think we also made some communication mistakes. I think we came out at a very inopportune time with the MoldATSA scandal. But this should not remove this topic from the agenda. Because the way a state designs its fiscal policy largely determines how the economy will function. It is important for us to set the priorities of this fiscal reform so that we can grow the economy. And if the economy grows, as a side effect, more revenues will also come into the budget,” Vasile Tofan said.

He noted that the new fiscal policy concept will include changes to the Value Added Tax to support citizens.

“In this new iteration, we will do it in a more responsible way, one that will protect even the most vulnerable households, including regarding VAT on food, gas, and energy,” said Vasile Tofan.

The fiscal policy concept will be presented tomorrow and will subsequently be subject to public consultations.

Earlier, the Ministry of Finance proposed a draft fiscal policy that was consulted with stakeholders, and some of its initiatives generated a series of discontent reactions in society.