The draft budgetary-fiscal and customs policy for 2021 was approved by the Cabinet. The document standardizes the income tax rates and increases personal exemptions for private individuals, especially for maintained persons by 50%, IPN reports.

The authorities said the draft contains measures to diminish fiscal pressure and new subsidization mechanisms for supporting economic recovery.

The draft budgetary-fiscal and customs policy for 2021 allows for the diminution of the income tax rate from 18% to 12% for persons who work in the justice sector and for the extension of the time limit for applying for tax concessions for the IT sector.

The VAT Refund Program will be extended until September 30, 2021 for agricultural producers affected by the natural calamities within the limit of the paid salary taxes. The excise duties were agreed for 2021 – 2023 and the annual rise for tobacco products was set at 15%, for alcoholic drinks at 5%, while for oil products at 9%.

There will be instituted a mechanism for subsidizing the creation of jobs by subsidizing salaries when young people, citizens who return home from abroad and persons with disabilities are employed. The state budget allocations for 2021 for this program come to 200 million lei.

The draft law also suggests annulling the 15% reduction on the payment of the property tax, enabling the local authorities in rural areas to set by themselves the property tax rates in the limits of 0.05% to 0.4%, enabling the local public authorities to set special local taxes on local public services others than those stipulated in the Tax Code.

The bonus to the salary medical personal is to be raised by 30% in 2021.

The bill is to be debated and adopted by Parliament.