Vlad Batrincha: Moldova is on the verge of economic disaster due to the new tax policy

CHISINAU, September 10 - RIA Novosti. Moldova is on the verge of economic and social catastrophe due to the new tax policy, said Vlad Batrincha, vice speaker of parliament from the opposition Party of Socialists.

The Parliament of Moldova on Thursday is considering in the first reading a new draft tax policy. The bill provides that the income tax rate for peasant households will almost double - from 7% to 12%, a tax will be introduced on parcels from online platforms, and a “sin tax” of 6% will appear for participation in gambling and lotteries. The VAT rate for the catering and hotel business will increase from 8% to 12%, and VAT on natural gas and electricity will increase. For most excisable goods, rates are planned to be increased by 10%, the excise tax on diesel fuel will increase by 20%.

“Moldova is on the verge of an economic and social catastrophe; raising taxes in the absence of measures to stimulate the economy risks leading to an increase in inflation, prices and poverty. Without real economic growth, it will be increasingly difficult for the state to cover expenses, pay interest and repay debts,” Batrincha said at a parliamentary meeting.

According to him, raising taxes will not ensure economic growth, since the funds received will be used to pay off existing debts. The politician added that the inevitable rise in inflation will further reduce the purchasing power of money and wages. Batryncha stated that the socialists will not support the controversial initiative of the Cabinet of Ministers.