The tax levied from private individuals who lease out realty to other private individuals will be of 7%, as opposed to 5% at present, IPN reports, quoting amendments to the 2017 draft fiscal and customs policy proposed by MPs and approved by the Government. The drafter policy, adopted by Parliament in the first reading, proposed that this tax should be of 10%.

By another amendment, a reduced VAT of 8% is imposed on biofuel used also to generate electricity. In the initial variant, the bill said the reduced VAT will be imposed only on the biofuel used to produce hot water and heat.

Through the other amendments, the authors of legislative initiatives are freed from presenting the analysis of the regulatory impact of the presented bills; the excises on oil products and trucks are increased in connection with the annulment of the environment pollution tax; the excise duty on malt beer is raised and the excises on precious metals are kept at the current level. Initially, it was envisioned that the excises on these products will be annulled.

Minister of Finance Octavian Armasu said the MPs formulated 29 amendments. Only those related to the capping of local taxes depending on the municipality/town/village caused debates in the Cabinet. At the suggestion of the executive director of the Conges of Local Authorities of Moldova Viorel Furdui, the Premier proposed considering additionally the mechanism of applying local taxes.

Prime Minister Pavel Filip said the 2017 draft fiscal and customs policy will be soon adopted by Parliament together with the draft budget law for 2017 and other important documents.