The Cabinet on Friday approved the bill providing that the VAT to the business entities of Gagauzia will be restored from the budget of the Autonomous Territorial Unit (ATU), which has a special legal status, IPN reports.

Minister of Finance Veronica Sirețeanu said the Tax Code will be adjusted so as to specify the source from which the levied taxes and duties will be restored and the mechanism for restoring taxes and duties to business entities of ATU Gagauzia.

“This way, it is proposed refunding the VAT and excise duties paid by business entities operating in the given territorial-administrative unit from the unit’s budget, within the limits of the available revenues, not from the state budget, as it is done now. The non-covered sums intended for refunding will be covered with special purpose transfers from the state budget, in the way stipulated by law,” noted the minister.

The bill is to be considered by Parliament. If it is adopted, the new provisions will start to be applied on October 1, 2023.

The legislative initiative that was put forward by a group of MPs of the Party of Action and Solidary was harshly criticized by deputies of the People’s Assembly of Gagauzia, who said that they will come to Chisinau to block the Parliament’s rostrum if this bill is not withdrawn.