Equal taxes on both banks of Dniester: Moldovan parliament passes first measures

Tax disparities between the two banks of Dniester will be gradually eliminated. A draft law to this effect today was passed in the first reading by 58 MPs.

The document, drafted by MPs from the Action and Solidarity Party’s (PAS) faction, provides for the introduction of a uniform tax and customs regime throughout the territory of Moldova, including in the eastern districts. The authorities thus aim to remove the current differences and ensure equal conditions for all economic agents.

The first measures will be applied as early as this year, when some tax exemptions for non-essential products, such as alcohol, will be removed. Subsequently, the value added tax (VAT) and excise duties will be applied to the import and sale of these products in the Transnistrian region, as in the rest of the country.

At the same time, the draft provides for the elimination of certain tax facilities for the supply of balancing electricity and natural gas, as well as the harmonization of import-export rules for economic agents on the left bank of Dniester. Full implementation of the reform is planned by 2030. According to estimates, these measures might generate additional revenues for 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 head of the parliamentary commission for economy, budget and finance, Radu Marian, said that the reform was based on the principle of tax fairness:

“We follow the principle: same country, same taxes. We care about the citizens on the left bank of Dniester, but these discrepancies must disappear step by step.”

According to him, the removal of exemptions will be carried out gradually:

“The first exemptions will be removed starting from 2026 for certain products. VAT and excise duties will be applied to their import and sale, just as in the rest of the country.”

The MP emphasized that the additional revenues would be directed towards reducing economic disparities:

“We will create a convergence fund, so that the money collected is used for modernizing infrastructure, supporting the business environment and helping citizens in the eastern districts.”

Radu Marian also drew attention to the differences in living standards between the two banks of Dniester:

“The data clearly show that the standard of living in the Transnistrian region is deteriorating: wages are twice as low, pensions are two to three times lower and inflation is higher.”

At the same time, he stressed that economic development does not depend solely on low energy costs:

“Cheap energy alone does not bring prosperity. We need the rule of law, clear rules for the business environment and functional institutions.”

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