Moldovan MP says Action and Solidarity Party proposes gradual elimination of tax exemptions for Transnistrian region, creation of convergence fund starting from 2026

MP, Chair of the parliamentary commission for economy, budget and finance Radu Marian today said that, together with more colleagues from the Action and Solidarity Party (PAS), he had registered a draft law aimed at correcting tax inequities applied to the Transnistrian region since the 2000s, by gradually eliminating the current exemptions.

The legislative initiative comes in the context of an earlier announcement by  Parliament Speaker Igor Grosu, and aims to gradually apply the same tax rules across the entire territory of Moldova.

First measures target nonessential products

According to the MP, the first tax exemptions to be removed as early as this year are the ones applied to products considered socially nonessential, such as alcohol.

“At the import and sale of these products, the value added tax (VAT) and excise duties will be applied, just as they are applied throughout the country,” Radu Marian specified.

The measure seeks to ensure uniform tax treatment and to eliminate competitive advantages created through differentiated regimes.

Convergence Fund from 1 August 2026

A central element of the draft is the creation of a Convergence Fund starting from 1 August 2026. According to the MP, the additional revenues generated by eliminating exemptions will be directed to this fund.

The goal is for the financial resources collected to be used “for the benefit of citizens in the Eastern districts of Moldova”, particularly in order to support the process of integration and development.

Arguments regarding fairness and integration

The MP emphasized that the draft had two major dimensions: the gradual integration of the region into the national tax and economic system, as well as ensuring fairness for economic agents across the country.

“We want the inhabitants of the Transnistrian region to be part of the modernization process Moldova is going through, and we also want to ensure fairness for businesspeople in terms of tax payments and products’ competitiveness,” said Radu Marian.

Data on support from the national budget

In support of the initiative, the MP also presented financial data on the assistance provided to citizens residing in the Transnistrian region:

- In 2025, social benefits paid from the national state social insurance budget exceeded 138 million lei, by over 40 per cent more than in 2024.

- Over 850 young people from the region benefited from state-funded places in educational institutions on the right bank.

- Almost 2,500 economic agents based in the Transnistrian region are registered with the Public Services Agency.

According to Radu Marian, these figures reflect the phased nature of the reintegration process, which involves both social integration and the gradual application of the same economic rules.

“Fairness and equitable contribution”

“Reintegration of the country is a priority process that we are carrying out step by step, ensuring the social integration of the region’s residents, as well as the gradual application of the same rules. Regardless of where we live in Moldova, we all want fairness, an equitable contribution to the country’s development and benefits provided on merit,” the MP noted.

The draft law is to be examined by the specialized parliamentary commissions, after which it will be submitted to debate and vote at the plenary meeting.