OREANDA-NEWS. July 16, 2012. The document was voted for by deputies of the parliamentary majority in two readings at once evening.

According to Deputy Finance Minister Victor Barbaneagra, the document stipulates the increase in excises on cars, oil products by 5% upon average to adjust them to inflation, the increase in excise on alcohol and application of a new formula of their calculation. Starting from January, 1, 2013 a fixed component of the tipped cigarette excise is to be raised by 50% from 20 to 30 leis for 1 thou. cigarettes.

Its ad valorum component is to be raised from 24% to 30%. According to the document, the 20% VAT on primary agricultural products is to replace the present lowered rate of 8% in 2013 in Moldova.

The difference between the old and the new rate will be refunded by the state as direct subsidies. The measures suggested are aimed at preventing distortions in the general fiscal system, simplifying the fiscal administration and supporting farmers. In 2013 Moldova will see the raise of natural gas VAT from 6% to 8% to accumulate additional funds in the state budget and the VAT flat reduced rate application to simplify fiscal administration.

The increase of VAT on natural an liquefied gas is expected to bring additional 91 mln. leis in the budget. In 2013 the rate of the tax on royalty ( the income from the copyright sale) is to be reduced; the period of placing leased facilities under the customs regime is planned to be shortened from 7 to 3 years for financial leasing and to 1 year for operational one. This will make local companies more competitive than the international ones. Incomes from the entrepreneurial license businesses are to be limited to 100 thou. leis.

This measure is designed to diminish the role of the shady economy and lead to fair competition among economic agents. The fiscal law for 2013 also provides annihilating VAT and customs duty exemptions applied to imported fixed assets introduced into the authorized capital. A sum of the annual income liable to taxation at the 7% income tax rate is to be increased from 25,2 thou. до 26,7 thou. leis.

The annual personal exemption is to be raised from 8640 to 9120 leis, with the dependant exemption to be raised from 1920 to 2040 leis. The parliamentary opposition outraged over the fiscal policy law passed and noted that the government raises taxes and excises for the third year in a row to increase receipts to the budget despite the revenue budgeted miss the target all the same.

The growth in taxes and excises affects a lot of export-oriented branches of the Moldovan economy. The changes will affect both: business, authorities are not partnering with, and ordinary people, who will become poorer as a result of a growth in prices.