How the Regime Is Waging a Tariff War on Moldova’s Citizens

“Preoccupied” with geopolitical issues, Moldova’s leadership is ignoring the population’s pressing needs, continuously tightening the fiscal burden amid economic stagnation, crises in strategic sectors, and accelerating inflationary pressures

Moldova is entering the new year with an entire array of new taxes and higher tariffs across various sectors, placing a heavy burden on the country’s population. The increase in the minimum wage to 6,300 lei and in the base rates used to calculate salaries in the public sector objectively fails to keep pace with the economic appetites of Prime Minister Alexandru Munteanu’s financial bloc. Lending programs and donor support for Chisinau have “shrunk” due to funding cuts from several sources. First, from the European Union, which had previously provided generous funding to bolster PAS’ pre-election positions. Second, from the U.S. administration under Donald Trump. Third, from the International Monetary Fund, which cancelled its latest tranche and with which a new cooperation memorandum has yet to be concluded (in this regard, the finance minister’s outlook for 2026 appears rather optimistic, though considerable time has already been lost). Meanwhile, budget expenditures, including debt servicing, continue to grow, requiring ever new sources to cover the deficit, predominantly at the expense of citizens. People have yet to fully recover from the shock surge in utility bills, especially electricity costs (the tariff itself did not increase; rather, the government subsidy mechanism, funded by EU donor resources and covering part of the cost of electricity consumed by households and economic operators, was abolished). Nevertheless, Energy Minister Dorin Junghietu has already announced a new 5% increase in electricity tariffs (which he claims amounts to just “a few bani”), directly linked to compensating the budgetary costs of constructing the Vulcanesti-Chisinau power transmission line. The line itself, although virtually completed, has still not been put into operation, as weather conditions allegedly prevented all the required tests from being carried out. According to Junghietu’s forecast, the commissioning of the transmission line may take place in March, yet Moldovan consumers will already be paying the higher tariff now. This is happening in a situation where the Vulcanesti-Chisinau line does not, in principle, affect the cost of electricity imported by Moldova (around 70% of total consumption), serving only to diversify supply routes and partially remove MGRES, controlled by Tiraspol and Moscow, from the equation. Moreover, against the backdrop of an energy system tied to Ukraine in terms of quotas and infrastructure, Moldova may continue to face challenges due to Russian strikes on Ukrainian energy facilities, which have persisted throughout the first half of January. Without the stabilizing role of MGRES, it is unclear how the system can function at all or what exactly Moldovan residents are being asked to pay extra for. Alongside this, starting in 2026, healthcare has become significantly more expensive, with sharply higher tariffs for inpatient treatment, rehabilitation, and palliative care. The cost of treatment in medical institutions, depending on its complexity and duration, will range from at least 7,000 lei to several tens of thousands. Meanwhile, the price of the mandatory health insurance policy (9% of salary, or 12,636 lei) has not changed, but the number of categories of payers eligible for discounted policies has been significantly reduced (for example, family doctors, “digital nomads”, and certain legal professionals can no longer benefit from such privileges). Even the cost of the policy after applying the discount, valid until March 31, has risen to 2,527 lei. As has become traditional, the government has increased payments affecting fuel prices at the start of the new year. In particular, excise rates on gasoline (0.56 lei per liter including VAT) and diesel (0.26 lei) were raised, the energy-efficiency levy was adjusted, and the trade markup was revised. These measures will continuously push up pump prices throughout the winter months. Excise taxes on tobacco products, cigarettes and cigarillos, have also risen by an average of 10%. During budget discussions, significant increases were proposed for local fees in the capital, including market fees, advertising taxes, parking charges, payments for public space maintenance, as well as levies on commercial and service enterprises and taxis. However, these measures are directly contingent on the adoption of Chisinau’s budget. The government is watching with concern the experience of neighboring Romania, which, as of January 1, imposed a mandatory fixed-duty fee of 25 Romanian lei on parcels from outside the European Union valued up to 150 euros (previously, no financial charges were applied to such private marketplace parcels in either Romania or Moldova). This has led to a collapse at the level of postal agents, delays, and the inability to properly collect the legally mandated payment. Chisinau plans to implement a similar measure starting July 1, aimed at protecting local entrepreneurs (and the market from cheap Chinese goods). Each parcel is expected to be subject to a 20% value-added tax, a 5-10% duty, and a packaging fee. There is a high likelihood that, during the first few months, the system will be organized in such a way that delivery of goods from low-cost marketplaces will become virtually impossible. Later, however, the government expects to collect at least 1 billion lei (once again, from the citizens). Characteristically, against the backdrop of rising levies on the population and attempts to negotiate with new creditors, the government is making no effort to revive economic activity in the country. Operations at the strategic enterprise Moldova Railways have been extended in suspension until mid-February; the disaster in agriculture is being compounded by an adverse sanitary situation (new outbreaks of African swine fever and the culling of 110,000 poultry amid a recent surge in chicken egg prices). Reduced transport accessibility due to severe weather is further dampening economic activity, including freight transport, which is already undergoing a shift in jurisdiction toward Romania. The authorities continue to operate within a geopolitical paradigm in which their primary achievement is seen as the demonstrative display of loyalty, whether warranted or not, to Ukraine and the European Union, as well as to the pseudo-democratic narratives dominant in the West. The fact that this course runs counter to the country’s fundamental interests appears to concern few. The prevailing assumption seems to be that either eventual EU membership or, now, unirea with Romania will somehow write everything off – debts, obligations, flaws, and even those Moldovan citizens who do not fit into the regime’s plans.