The capping of taxes is counterproductive and illegal because it affects the small and medium-sized businesses, advantaging simultaneously companies with a high turnover, Viorel Furdui, executive director of the Congress of Local Authorities of Moldova, and Veaceslav Ionita, expert of the Institute for Development and Social Initiative “Viitorul”, stated in the program “60 minutes of economic realism”.

Viorel Furdui noted the excessive centralization is the core of the problem. “The governments, instead of finding solutions to involve the local authorities in all the economic development processes of the country, lobby for the interests of narrow groups. It is also about the capping of local taxes. We have a centralized system from all the viewpoints: political, administrative, financial and economic. The local administration is very limited in its possibilities of influencing the situation. The monopoles, inefficiency and bureaucracy from the center derive from here,” he stated.

“At the local level, the giants that provide services do not pay local taxes. It is about large business entities that do not pay local taxes (financial institutions, Moldtelecom, Post Office). At the same time, the small entrepreneurs are obliged to pay these taxes,” explained Viorel Furdui.

Veaceslav Ionita said three are no financial capacities at the local level. According to him, for a local development strategy, a sufficiency of capital is needed at the local level, free from dependence on the central authorities.