The Cabinet approved the draft fiscal and customs policy document for 2018, IPN reports.

The document defines a new mythology for keeping a record of fixed assets and suggests introducing a reduced VAT of 8% on heat produced from solid biofuel for public institutions and exempting from VAT the supplies of fuel and goods intended for ships involved in international transport that fly under the Moldovan colors. Also, milk producers could be refunded the value added tax.

New taxable income rates were set for private individuals, while the personal exemption was increased. Thus, in 2018 the personal exemption for private individuals will be 11,280 lei, as opposed to 10,620 lei in 2017, while for maintained persons will rise from 2,340 lei to 2,530 lei.

The taxable income rates will increase from 31,140 lei this year to 33,000 lei in 2018. The taxation rates remain 7% for incomes lower than 33,000 lei and 18% for those larger than this sum.

It is introduced a 5% tax on the incomes of citizens who supply business entities with agricultural products.

The property tax will now cover vehicles with a value higher than 1.5 million lei. The fiscal and customs concessions for duty-free shops working in Moldova or on the border will be eliminated as of July 1, 2018. The holders of such license will work until the license expires.

The fiscal and customs policy for 2018 is to be adopted by Parliament.