Prime Minister Vasile Tarlev announced on Thursday that the Government prepares a reform of the fiscal framework of the Republic of Moldova and stated that he wants salaries to be paid "on cards not in envelopes".

"I admit that salaries are paid in envelopes too, but only after all taxes are paid", said the Prime Minister in a meeting with the representatives of the National Confederation of Patronages. The head of Government admitted legalization of remunerations is a problem for the Republic of Moldova.

Director of Orvento Metal Company, Igor Crapivca, said at the meeting that according to various data, between 40 and 70% of the salaries is paid by shirking payment of taxes in Moldova. In this context, Crapivca pointed that it a powerful reformation of the fiscal framework is required. Among the solutions he proposed is the establishment of a common social tax and institution of a moratorium in what regards modification of healthcare insurance.

Crapivca also stressed that, although income tax for companies was reduced from 32 to 15% in the recent years, the associated taxes are still "very big". According to him, in order to increase liquidity of the monetary mass of the economy, VAT is to be reduced from 20% to 18%, and the firms investing in development be exempted from paying the VAT. The businessman also asked the Government to annul the tax on dividends, which is a "double taxation" according to him.

In reply, Prime Minister said that it is impossible to suddenly modify the fiscal framework, in accordance with the pledges Moldova made before international organizations. "Foreign partners expect from us continuity in the fiscal system. Moreover, we are preparing a set of amendments, and adjustments that will bring about the reformation of the existent framework", said Tarlev without providing any details about fiscal innovations. The Prime Minister said though that the Government reached a consensus with the business environment in what regards taxes and the ministers and businessmen "think and talk alike" in this regard. // BASA-Press


Publication date: 18 January 2007   

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