The capping of local taxes is beneficial to the small and medium-sized businesses. This way, the companies are not pressed by exaggerated taxes set by the local authorities for personal or political interests. In a news conference at IPN, chairman of the Small Business Association Eugen Roscovan said the economic entities are concerned about the request to abrogate this provision made by some of the local authorities.

“For the first time, the Small Business Association of Moldova obtained something positive from Parliament – the capping of local taxes. This will prevent the local authorities from setting the taxes as they want or as they interpret the law. The businessmen will no longer need to close the businesses because of the burden of the too high taxes,” said Eugen Roscovan.

In the same news conference, a group of businessmen from Nisporeni district said the decisions taken by the local administration impinged earlier on them.

Head of the Nisporeni local office of the Small Business Association Leon Buza said that when the taxes are not capped, some of the companies are taxed too much, while others are not at all taxed. “We are concerned about the fact that some of the mayors demanded abrogating this provision. We call on Parliament to maintain the capping as this way we will be saved from bankruptcy,” he stated.

Vasile Robu runs a shop of phytosanitary products. “I work for 7-8 months a year, when these products are in demand. I didn’t oppose when four similar shops were opened in Nisporeni town, one of which belongs to the mayor. However, last year the tax on my business was doubled, while this year I must pay a tax of 50,000 lei at a time when the other agricultural stores pay the same tax of 3,500,” he said.

Mihail Ciobanu owns a construction materials store in Nisporeni. He said he was the first to open such a shop in the town, but now there are 10 such stores there. “The turnover is very low, but they put a tax of 50,000 lei on me. I think the mayor follows a personal goal and wants to see my business closed,” he said.

Vladimir Mamaliga runs a filling station in a village of Nisporeni district. He said the taxes put on him before the capping ruined his business.

Parliament decided to cap the local taxes from this year after a similar provision was abrogated in 2011. In villages and district centers, the taxes cannot exceed 7,100 lei, while in towns – 18,000 lei.