A Day before Başkan Inauguration Marian Announces Cuts in Gagauzia Budget

A day before the inauguration of Gagauzia’s Başkan, Evghenia Guțul, the chairman of the Commission for Economy, Budget and Finance, Radu Marian, said that VAT reimbursement to economic agents in the autonomy would come from the Gagauz budget. According to Marian, Gagauzia enjoys budgetary autonomy and VAT is reimbursed from the budget if it is higher on purchases than on supplies concerning capital investments, bani.md reports. "In an incomprehensible way, against the principles of local autonomy, VAT reimbursement in Gagauzia is made from the state budget. We have a situation when VAT is collected, but these resources do not participate in VAT reimbursement. This norm was adopted in 2004. However, over the last five years, the central budget lost 640 million lei from VAT refunds," Marian said. The MP said that the Tax Code would be amended to solve the problem, namely the article on VAT for economic agents in terms of tax and fee refunds. "The reimbursement will be made from the autonomy's budget, within the available incomes, and the uncovered amounts will be compensated from the state budget. After making the amendment, the budget savings will amount to 500 million lei over the next five years. Thus, the money will be used all over the country, and not only in the autonomy," the MP explained. Coincidence or not, Radu Marian announced the amendment to the Tax Code a day before the inauguration of the new Başkan of the Gagauz autonomy, Evghenia Guțul.