A number of mayors and head of branches of the Congress of Local Authorities of Moldova (CALM) are against the Government’s initiative to cap local taxes as they consider enormous damage will be caused to local communities this way. The Constitution of the Republic of Moldova, the principle of local self-government and international agreements are violated. Not the citizens or businesses, but particular obscure interest groups will benefit from such changes.
The mayors announced a protest march for November 27, starting at 10am. They intend to go from the Ministry of Finance up to the Government Building, IPN reports.
In a news conference, CALM president Tatiana Badan said the capping of taxes is a serious violation of local self-government and of Moldova’s commitments concerning decentralization. She voiced hope that a respectful attitude will be adopted towards the local authorities and the citizens and called on the MPs not to support such a measure.
Mayor of Strășeni Valentina Casian said the initiative to cap local taxes is an offense to all the mayors and representatives of the local public authorities, which are considered unable to promote independently a fiscal policy at the local level and of building friendly relations with the business community.
Mayor of Peresecina Valentina Buzu stated that the local authorities do not act to the detriment of the development of communities. The 2021 draft fiscal policy document leaves the impression that some of the large business entries are protected to the detriment of small ones. The local taxes are approved transparently and the mayors do not aim to place obstacles to or impose exaggerated taxes on businesses. They aim to attract investments and should be allowed to further decide the size of taxes.
CALM executive director Viorel Furdui said all the Congress’ attempts to discuss this problem with the central authorities failed. The protests are the only remaining method. The Government’s attempt to limit the few local budget revenues is the fourth one during the past seven years. Invoking the care for the business community, they actually aim to promote very narrow interests.
The capping of local taxes is stipulated in the draft budgetary-fiscal policy for 2021.
