Tax exemptions for eastern districts of Moldova to be gradually eliminated

Fiscal and legislative discrepancies between the two banks of the Dniester River will be gradually eliminated. The parliamentary commission for economy, budget and finance today examined a draft law to this effect.

The legislative initiative, developed by a group of MPs from the Action and Solidarity Party’s (PAS) faction, aims to ensure a uniform tax and customs regime all over Moldova, including for legal entities and individuals from the eastern districts.

The first tax exemptions will be removed as early as this year for non-essential products, such as alcohol, so that the value added tax (VAT) and excise duties will apply to their import and sale in the districts on the left bank of Dniester, just as in the rest of the country. Full implementation of these measures might bring additional revenues to the state budget estimated at 3.3 billion lei annually.

The draft also provides for the repeal of VAT exemptions for the delivery of balancing electricity to economic agents not connected to the budgetary system and for imports of natural gas from JSC Moldova-Gaz to LLC Tiraspoltransgaz, which have no relations with Moldova's budget. These provisions will enter into force on 1 June, 2026.

In addition, the taxation of import and export operations of economic agents from the eastern districts will be standardized, eliminating above-normal profits resulting from tax evasion. Full implementation of this measure is planned for 1 January, 2030.

In the context of the reintegration process, a Convergence Fund will be created, in order to help mitigate possible price increases, modernize infrastructure, harmonize standards and support the business environment. The Fund will also finance social projects in the areas of education, health, employment and social protection, in order to strengthen the confidence of the residents on both banks of Dniester River.