Moldovan Parliament Approves Measures to Support Citizens and Businesses During Pandemic

On 23 April, the Parliament of the Republic of Moldova held a plenary session. During the session, the Parliament approved the draft law on the establishment of business support measures in the context of the economic and social consequences of the COVID-19 pandemic.

The project was developed by the Moldovan government. Prime Minister Ion Chicu, presenting the document to the MPs, emphasized that the project is aimed at supporting the business environment and the population during and after the pandemic.

From 1 May 2020 to 31 December 2020, according to the Interest Subsidies Program, it is planned to compensate the monthly interest on loans taken by enterprises for the payroll and replenishment of working capital.

The document also provides for the establishment of a legal framework for the implementation of the VAT Refund Program in the subsequent period. Taxpayers who pay VAT will be able to refund the tax, which will significantly increase the business liquidity. The main sectors of the economy, which will receive monetary resources (about one billion lei), will be agriculture, forestry and fisheries, transport, information and communication, etc.

To provide support for enterprises in the hospitality industry, the VAT rate will be reduced from 20% to 15%.

The law also provides for a change in the mining tax, easier access of domestic producers to duty-free shops, publishing support, etc.

Photo: parlament.md