Government puts further pressure honest tax payers, expert

Authorities are putting higher pressure on honest salary earners, dealing them another blow by proposing a 1 percentage point increase in their share of social insurance contribution, says expert Gheorghe Costandachi of the think-tank IDIS Viitorul. “In many states that are richer than Moldova, the rate paid by employees is lower than ours”, stated the expert. Unions have estimated that if the proposal passes, employees' incomes will drop by 250 million lei. Gheorghe Costandachi believes that the number will be much higher, amounting to 270 million lei at least. “The unions' calculations are based on previous years' salary funds, whereas the fund is larger now”, specified the expert. Gheorghe Costandachi says that this measure will put even a larger burden on the shoulders of salary earners who honestly pay their taxes. “We have the 27.5 billion lei salary fund for 2013, but there is another, unofficial, fund besides the official one. Instead of searching for ways to fight “envelope salaries”, authorities put higher pressure on those who declare all their incomes. We will witness an increase in the number of those who receive envelope salaries”, says the expert. According to Gheorghe Costandachi, this modification will also affect the State Budget and official employees. The Government presented to the Parliament the bill on State Social Insurance Budget for 2013, with an increase in the rate of contribution from salary earners by 1 percentage point to 7%, on account of decreasing the employers' contribution. The Moldovan National Employees Unions Confederation stated that it will organize protests unless the Government reverses the measure.

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