Moldova’s ruling Action and Solidarity Party (PAS) has signaled it will move forward with plans to eliminate long-standing fiscal exemptions for the Transnistrian region according to Radu Marian’s statement “One country, one tax system”, despite warnings from Tiraspol of a looming humanitarian crisis.
Radu Marian and the potential for a humanitarian crisis
The industrial and social sectors of the Left Bank would also face a severe blow. The inevitable result of these measures would be a critical deterioration in the socio-economic situation of the residents and a humanitarian crisis in the region.
These risks were highlighted by the Supreme Council of Transnistria, which recently appealed to the MoldovanParliament to abandon plans to scrap the preferential regime that has been in place since 1997.
Legislative stance on tax alignment
As expected, the PAS majority chose not to heed these warnings. Radu Marian, head of the parliamentary commission on economy, stated that the alignment of VAT and excise duties is part of a broader policy to standardize taxation rules. He claimed that the funds collected would be used to finance public services for residents of the Left Bank.
“One country, one tax system,” Radu Marian remarked. However, he stopped short of addressing the fact that taxation involves not only the collection of funds but also their equitable redistribution, including support for regional development and the social sphere.
