Moldovans' online purchases estimated at 4.3 billion lei

Chisinau, 27 November /MOLDPRES/ - Moldova’s citizens will purchase online goods and services from abroad worth 4.3 billion lei in 2019, twice as much against three years ago, when the online purchases amounted to 2 billion lei. This market registers a 30-per cent annual increase and is the most dynamic market of Moldova, according to economist Veaceslav Ionita.    

The expert said that, in 2020, the online purchases from abroad would be worth about 6 billion lei and in less than three years, they will exceed 10 billion lei. “Obviously, sooner or later, this market should arouse the government’s interest, in the sense of its taxation,” Ionita said.

Most online purchases refer to low-value personal consumption goods, which according to the current legislation, are not subjected to taxation in case of import. Yet, a part of this sum is used to buy online entertainment, which according to the cabinet, must be taxed and this taxation is contained in the fiscal policy for 2020.   

According to its size, the entertainment market is comparable with the oil and natural gas market taken together. People spend for entertainment more than for any other thing. In 2019, this market will reach a share of 2.2 trillion dollar worldwide or 2.5 per cent of the global Gross Domestic Product (GDP).   

In the last several years, Moldovans have become more and more active consumers of online entertainment and the biggest providers of these services are from abroad and have no fiscal relations with Moldova’s authorities, the economist noted. Through the 2020 budgetary and fiscal policy, the government is set to oblige the global providers of online entertainment services to have fiscal relations with Moldova’s budget and pay the value added tax on the services provided.   

It is quite difficult for us to establish the size of the market; yet, the government supposes that it is about at least 500 million lei annually and the taxation of these services would additionally bring about 100 million lei to the state budget.

A national opinion poll is enough to say exactly how much Moldovans are consuming for the online entertainment; yet, for sure, this consumption will double after each 2-2.5 years. The budgetary collections from this market will record the highest increases in the next years and will 2-3-fold exceed the growths of the budget revenues from other sectors, economist Veaceslav Ionita said.  

He also said that the government’s intention to tax the online entertainment would create a financial motivation for the cabinet to fight against the piracy and intellectual theft via the Internet, as the executive body would like everything to be legal and taxable. This thing will most likely be beneficial for companies; the only people who must understand that something happens are we, the consumers, who starting from 2020 will be “asked” by the government to no longer steal online films, music, plays, but buy them and also pay taxes for them.