Moldova Passed a Law Establishing Uniform Tax Rules for Both Banks of the Dniester

The Moldovan Parliament has passed a bill providing for the phased elimination of fiscal and legislative differences between the two banks of the Dniester. Revenue from taxes and duties will be channeled into the Convergence Fund. The initiative was developed by a group of MPs from the PAS faction. The law aims to introduce uniform tax and customs rules across the whole country, including settlements in the eastern regions, reports rupor.md. According to the document, certain tax exemptions on products deemed socially non-essential, including alcohol, will be abolished as early as this year. VAT and excise duties will apply to the import and sale of such goods in the left-bank regions on a general basis. Provisions providing for VAT exemption on the supply of balancing electricity and the import of natural gas under certain schemes, previously applied in relations with enterprises not linked to the Republic of Moldova’s budgetary system, are also being abolished. These changes will come into force on 1 January 2027. Provisions allowing a special regime for import and export operations for economic agents from eastern regions are also being repealed. Full implementation of the unified tax regime is scheduled for 1 January 2030. The document also provides for the establishment of a Convergence Fund, the resources of which will be directed towards infrastructure development and support for businesses and the population of the region. It is estimated that additional budget revenues will amount to around 3.3 billion lei annually. In addition, changes have been introduced regarding VAT refunds for agricultural producers, under which the refundable amount will be 40% of the tax deductible in the subsequent tax period.