Moldova: Prime Minister reverses VAT hike on hygiene products

VAT rate hygiene products fiscal policy small producers bureaucracy reduction

Moldovan Prime Minister Vasile Tofan has announced that women's hygiene products will remain at the reduced VAT rate of 8% after a proposal to increase the tax to 20% was retracted. The reversal follows public criticism from former Health Minister Ala Nemerenco and economist Stas Madan, who highlighted that such a move would increase costs for essential goods. Finance Minister Victoria Belous confirmed that the 2027 fiscal policy proposals are still being finalized and that these concerns are being addressed.

Separately, Prime Minister Tofan has called for the simplification of administrative procedures for small-scale and artisanal producers. He directed the National Agency for Food Safety (ANSA) to present a comprehensive package of measures by October 15 to reduce bureaucracy. The goal is to ensure that regulatory requirements for small producers are not as burdensome as those for large industrial enterprises, while still maintaining essential food safety and hygiene standards.