Moldovan deputy PM for reintegration says gradual elimination of tax exemptions provided to economic agents of Transnistrian region to allow unifying fiscal space

The gradual elimination of tax exemptions provided to economic agents of the Transnistrian region will allow the unification of the fiscal space throughout the entire territory of the country. Deputy Prime Minister for Reintegration Valeriu Chiveri today made statements to this effect, after Tiraspol had asked Chișinău to abandon the new tax provisions.

The official stressed that the legislative amendments had gone through all legal procedures, with transparency ensured.

“Parliamentary hearings were held, to which economic agents from the left bank of Dniester were also invited. These changes are about people, first and foremost, and not about taxes and funds, and they will allow us to unify the fiscal space across the entire territory of the country,” noted Valeriu Chiveri.

Through the approved amendments, the authorities aim to eliminate existing differences and ensure equal conditions for all economic agents of Moldova. The first measures will be applied this year, when certain tax exemptions for non-essential products, such as alcohol, will be removed. Subsequently, the import and sale of these products in the Transnistrian region will be subject to value added tax  (VAT) and excise duties, just like in the rest of the country.

The draft also provides for the removal of certain tax facilities for the delivery of balancing electricity and natural gas, as well as the harmonization of import-export rules for economic agents from the left bank of Dniester. Full implementation of the reform is planned by 2030. According to estimates, these measures could bring additional revenues to the state budget.

In the context of the reform, the authorities will also create a Convergence Fund, aimed at reducing economic disparities between the two banks of Dniester. The resources will be used for infrastructure projects, support for the business environment and social programmes.

The authorities intend for these measures to contribute to the country’s economic reintegration and to bring the Transnistrian region closer to European standards.