Tax on income of private people to decrease from 18 to 12 per cent in Moldova

Chisinau, 24 July /MOLDPRES/ - The tax on the income of private people will decrease from 18 per cent to 12 per cent by the introduction of a single quota and the annual personal exemption will grow more than twice. Prime Minister Pavel Filip made statements to this effect after a meeting of the Democratic Party (PDM) today.  

At a news conference, the official said that the participants in the PDM meeting today had discussed the shadow economy and working out of functional policies for attracting investors.  

„An older problem represents the envelope salaries for employees, which means that less money reaches the state budget and, respectively, citizens are provided with lower pensions. Therefore, we ruled to decrease the taxes, in order to stimulate the employees and employers to work legally. At the same time, this amendment will allow citizens to remain with more money in pockets. Also, we decided to reduce the quota of the contribution of the employer to the State Social Insurances Budget from 23 per cent to 18 per cent, I mean the corporate sector. At the same time, the annual personal exemption will grow more than twice, from 11,280 lei at present up to 24,000 lei. The provisions will enter into force on 1 October,” Pavel Filip said.  

For his part, the head of the parliamentary commission for economy, budget and finances, Stefan Creanga, said that these amendments would have a positive impact on citizens. “The persons receiving salaries up to 3,500 lei will no longer pay taxes. Thus, the residents’ revenues will increase. At the same time, economic agents will enjoy a domestic financial increase; employees’ wages will increase due to this fact. These instruments will allow diminishing the payment of envelope salaries,” Creanga said.   

Also, within the fiscal reform, the participants in the news conference informed about a cut in the quota of value added tax (VAT) from 20 per cent at present to 10 per cent for the services of the HORECA industry, which includes the restaurants, hotels and coffee houses.  

(Reporter A. Ciobanu, editor A. Raileanu)