Insurers Union of Moldova suggests allowing income tax deductions

The Insurers Union of Moldova, supported by the National Financial Market Commission, proposes that the private individuals who purchase life insurance policies should be exempted from paying a part of the income tax. The proposal was submitted in the context of the public debates on the draft medium-term fiscal policy plan for 2012- 2014, which was published on the Ministry of Finance’s website, Info-Prim Neo reports. “We suggest deducing 3,300 lei a year at the first stage, which is the average salary in the economy forecast for next year,” said president of the Insurers Union of Moldova Sergiu Puscuta. Vladimir Stirbu, head of the National Financial Market Commission’s Insurance Department, said that this fiscal instrument can be used to stimulate the development of life insurance. “Life insurance is a long-term policy and includes a saving component. If this type of insurance is developed, the private individuals will have one more alternative for saving money. In a certain period of time, after paying the insurance premiums, they will collect an additional sum to the pension for example,” said Vladimir Stirbu. Another proposal formulated by the Insurers Union of Moldova is to remove the ceiling of 3% of the gross income of companies involved in optional insurance. “We consider that this restriction - allowing deducing only 3% of the gross income from optional insurance – is outdated and represents a bureaucratic barrier. Economy advances and deductions should be allowed from all the taxes paid by entrepreneurs on optional insurance (property, health and other insurance that is not mandatory),” said Sergiu Puscuta.