Municipalities currently applying rates of 0.1-0.3% to the property tax risk losing up to 83% of these revenues, if the fiscal budget policy for 2027 is adopted in its current form. The Congress of Local Authorities of Moldova has submitted nine proposals to the Parliament and requests the amendment of the project before the second reading, reports IPN.

According to CALM, the project stipulates that if a local council does not adopt the decision regarding quotas in time, the last decision in force will continue to be applied for local taxes, while for property taxes the minimum quota will be applied. The Association believes that these categories of income should be treated similarly. Therefore, the congress proposes that the last decision of the local council should remain valid until its amendment, and the minimum quota should only be applied to properties for which the local authority has not previously established a quota.

Also, CALM points out the issue of agricultural lands without buildings. Starting next year, agricultural lands and village homes are set to fall under the tax code, however, according to CALM, in the current version, agricultural lands without buildings are not included in a distinct category and not even a minimum rate has been established. The association proposes postponing the application of the new regime until January 1, 2028, or introducing a distinct category for these lands.

At the same time, the Congress draws attention to the arrears in local taxes and fees, which exceed 220 million lei. Therefore, it is proposed that the State Fiscal Service should be able to collect these debts directly from the bank accounts of the defaulters.

CALM requests the examination of proposals before the second reading vote and the creation of a working group with the Ministry of Finance for fiscal decentralization measures. The Congress warns that next year the revaluation of real estate, the transition of rural localities to the fiscal code regime, and the general local elections will take place concurrently. Therefore, the overlap of these processes could create difficulties in setting tax rates, and in some cases, it may lead to a reduction in revenues from property tax or situations where agricultural lands remain without an applicable rate.