President Promulgates Law on VAT Reimbursement in Gagauzia from Its Own Budget

Starting from 1 November, economic agents in Gagauzia will be refunded VAT from the local budget, not from the state budget, as it was earlier. The bill was promulgated by President Maia Sandu. The document was published in the Official Monitor on Saturday. Article 6 of the Tax Code was supplemented by the parliamentary decision of 6 October. It stipulates that ATU Gagauzia should reimburse taxes to entrepreneurs, including the value added tax (VAT), from the local budget. The state plans to save about 640 million lei as a result of the changes. This is the amount that has been transferred to the autonomy over the last five years. The authorities are convinced that the new rules will ensure the observance of the principle of financial fairness between the localities of the country. If the autonomy cannot cover these expenses from the budget, the difference in the reimbursement amount will be covered from the state budget in the next fiscal year. The Gagauz authorities objected to the decision. Earlier, the chairman of the People's Assembly of Gagauzia, Dimitri Constantinov, said that they plan to hold discussions with various international partners of Moldova and persuade them to persuade Chisinau to reconsider the decision.