The entrepreneurs in Moldova will be able to profit from the reduction in taxes to raise the salaries of employees, MP Eugen Nichiforciuc was quoted by IPN as saying in the talk show “Issue of the day” on Canal2 channel.

According to him, this is a possibility for some of the citizens to return home. “The effects will be felt immediately and this is very important for creating new jobs and for increasing salaries given that there is a shortage of staff in many areas and we will stimulate the people to remain and work in the country,” stated Eugen Nichiforciuc.

“For the first time in the Republic of Moldova, the subsistence minimum will not be taxed as the personal exemption is raised from 11,000 lei to 24,000 lei a year. This is very important as those who pay higher income taxes will now see the difference remaining in their pockets,” said the MP.

Entrepreneur Alexandru Bordea said the money that will remain in companies’ accounts could be invested in the development of business by raising employees’ salaries or by creating better working conditions for these. The employees and entrepreneurs who, for particular reasons, didn’t work fully officially will be stimulated by this initiative to change things and more money will be thus collected into the state budget.

Parliament on July 26 adopted a fiscal reform by which a rate of 12% is introduced on the income tax for private individuals as from October 1 this year. Currently, the private individuals are taxed a rate of 7% for revenues under 33,000 lei and of 18% for revenues that exceed this sum. The annual person exemption was increased from 11,000 lei to 24,000 lei a year.