The fiscal reform that came into force on October 1 this year will bring additional revenues of about 700 million lei to the population as the personal exemption was raised and a common taxation rate of 12% was set. The issue was developed in the talk show “Issue of the day” on Canal 2 TV channel, IPN reports.
Besides the benefits for the ordinary citizens, the business entities are also advantaged as they will save about 1.7 billion lei as a result of the reduction in the social contribution rate from 23% to 18%. “These saving could be either invested or used to increase the salaries and such moves will stimulate economic growth,” stated Dorel Noroc, head of the Fiscal and Customs Policy Division of the Ministry of Finance. According to him, after October 1 the citizens should have higher salaries as their pays will be taxed according to a new system.
The former head of the State Tax Service Ion Prisăcaru said this formula is a very courageous one. “This reform is complex namely because all the interested sides will benefit from it. Even if some say the revenues collected into the budget will diminish and the state will suffer, I’m convinced that the budget incomes will only increase,” he stated.
According to Ion Prisăcaru, the taxation regime applied as a result of the reform is very favorable and from this viewpoint Moldova can be an example for other states.
As of October 1, a tax rate of 12% is put on the revenues of private individuals, as opposed to a rate of 7% on incomes lower than 33,000 lei and a rate of 18% on incomes larger than this sum used until now. Taxi drivers with a monthly salary lower than 10,000 lei will pay a common tax of 500 lei a month. The personal exemption rose to 24,000 lei a year. The personal exemption for persons who remained with disabilities as a result of the war for defending the country’s integrity and of the Afghanistan war will be 30,000 lei.
