The fixed income tax rate for citizens who supply agricultural products to business entities will rise from 3% to 5%. The excise duties on oil products, tobacco and alcohol will also increase. This is provided in the fiscal and customs policy for next year that was passed by Parliament in the first reading on November 2, IPN reports.
As of January 1, 2018, the owners of vehicles worth over 1.5 million lei will pay property tax. Currently, the property tax is paid only on expensive homes that are over 120 square meters in area.
The excise duties on cigarettes with filter will rise by 50 lei per 1,000 pieces, while on cigarettes without filter three times.
The tax and customs concessions for duty-free shops are annulled as of July 1, 2018. In this connection, Minister of Finance Octavian Armasu said the duty-free shops at the entrance to Moldova will be closed when their licenses expire because, in the absence of a mechanism for controlling the purchased products, these sell most of the goods as contraband through announcement websites. The duty-free shops at the exit from Moldova will continue work.
The milk producers will have the right to VAT refund, while the reduced VAT of 8% will be applied to heat produced from solid biofuel for public institutions.
As regards private individuals, these will benefit from a personal exemption of 11,280 lei a year, up from the current exemption of 10,620 lei. The exemption for each maintained person will rise from 2,340 lei to 2,520 lei a year. The special personal exemption, for those who took part in the Chernobyl cleanup, the war for defending Moldova’s integrity, the Afghanistan war and others, will be 16,800 lei a year, up from 15,840 lei at present.
Two income tax rates will be applied in 2018 as well – of 7% on incomes lower than 33,000 lei, up from 31,140 lei in 2017, and of 18% on higher incomes.