Excise duties' regime to be fully changed in Moldova

The government today approved a draft law, in order to fully change the excise duties’ regime by presenting a new edition of Title IV of the Fiscal Code. The initiative introduces new exemptions from excise duties and provides for the full digitalization of procedures relates to excise duties.

The Ministry of Finance said that the approval of the draft represents an important step in the process of modernizing the fiscal system and aligning with European Union’s legislation, especially regarding the general regime of excises and other applicable regulations for excisable products, such as alcohol and tobacco products.

“This draft is a reform of the system concerning the excise duties’ regime and an alignment with the standards and requirements of the European Union. By implementing this draft, we will have fewer budgetary losses caused by tax evasion, reduced physical interaction between taxpayers and authorities and more efficient control over this sector,” said Secretary-General of the Ministry of Finance Dina Rosca.

The draft introduces new exemptions from excise duties, applicable in certain situations such as natural or accidental losses of products under a suspension regime, the use of denatured alcohol for technical or industrial purposes, and products used on scientific or medical purposes.

At the same time, it provides for the full digitalization of procedures related to excise duties and the elimination of present bureaucratic processes based on paper documents, such as the introduction of electronic documents, real-time monitoring of the movement of excisable products by authorities and clarifying the status of authorized warehousekeepers and their associated responsibilities.

As for companies that produce or market excisable products, the new framework provides standardized procedures for getting permits, exclusively online reporting, removing frequent visits to desks, and filing physical documents.

The draft is set to come into effect upon Moldova's accession to the European Union, and the Ministry of Finance encourages entrepreneurs and relevant institutions to start preparations in advance, in order to ensure a smooth and efficient transition.