Moldovan producers seek revisions to 2027 fiscal policy draft

Business organizations and agricultural associations in Moldova are calling for revisions to the 2027 fiscal policy draft during public consultations held by the Parliamentary Commission on Economy, Budget, and Finance. Producers argue that proposed tax increases could raise production costs and reduce sector competitiveness.

Key points of contention include:

• VAT Increases: The Union of Sugar Producers of Moldova requested maintaining the 8% VAT rate on sugar, as the draft proposes an increase to 20%, which could raise consumer prices by approximately 7%. Similarly, the Speranța-Cons association opposed raising VAT on sweet corn from 8% to 20% and peas to 12%.

• Excise Duties and Income Tax: Moldova Fruct and other representatives expressed concerns regarding a proposed 20% annual increase in diesel excise duties between 2027 and 2029 without compensation mechanisms. Additionally, concerns were raised regarding income tax increases for peasant households and a proposed rise in income tax for savings and loan associations from 0% to 18%.

• Cash Flow Concerns: The Association of Lavender Producers noted that increasing VAT from 8% to 12% could result in 600–700 million lei being temporarily held in the state budget before being refunded to farmers, creating liquidity issues.