MP Veaceslav Nigai proposes raising the VAT ceiling to three million lei

IPN.md

28 June 2025
13:03

Raising the ceiling for value added tax payers from 1.2 million to 3 million lei is provided for in a legislative initiative registered in Parliament by MP Veaceslav Nigai, deputy chairman of the Respect Moldova party. According to the MP, in the current economic context, marked by inflation, the current ceiling has become irrelevant and constitutes a significant barrier to the development of businesses, IPN reports.

“This low limit becomes a considerable administrative burden, discourages growth and, last but not least, encourages the artificial fragmentation of businesses or even a slide into the informal economy”, the MEP added, quoted in a press release of the political party.

The party’s representatives argue that the proposed amendment will relieve a considerable number of small and medium-sized businesses from the complex obligations related to VAT collection, registration and reporting. Firms that will no longer be VAT payers will retain the VAT amounts, significantly improving their cash flow.

“This liquidity can be used for investments, expanding production capacities or creating jobs,” said Iulia Costin, also the party’s vice-president. She added that although the state budget will collect about 150-200 million lei less revenue in the first years of implementation, the long-term benefits are considerably higher. “In 2025, the budget forecasts VAT revenues of over 36 billion lei. So this ‘loss’ is only 0.5-1% of the total. This is a small price for the oxygen we provide to SMEs”, the politician noted.

Another vice-president of the Respect Moldova party, Eduard Grama, a former minister of agriculture, noted that many small and medium-sized businesses in this sector face significant administrative challenges. By removing the VAT tax burden for more producers and processors, these businesses could become more competitive.

Small and medium-sized enterprises account for 99% of all reporting enterprises in the country. They employ more than 352,000 people, or 65.3% of all employees, according to National Bureau of Statistics data for 2023.

Agriculture Legislative initiative VAT

IPN | Cultural Agenda | July 19

Agenda of events for Sunday, July 19

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A blood filtration technology, used for the first time in the Republic of Moldova

The first day of the “Te salut, Chisinau” festival gathered thousands of residents and tourists

Meteorologists have issued a yellow heatwave warning for almost the entire country

by Iana Josu 18.07.2026

Meteorologists have issued a yellow heatwave warning for this weekend. In most parts of the country, the maximum temperatures will reach +34 degrees Celsius, reports IPN.

The warning is valid for the center, south, and east of the country. Several districts in the north are also under the yellow code. The northernmost districts of the country such as Briceni, Ocnita, Edinet, Drochia, Soroca, Glodeni, Rascani, and Donduseni – are not affected by the warning.

According to the Authority for Meteorology and Environmental Monitoring, the warning can be updated depending on the evolution of weather phenomena.

During periods of heatwave, authorities recommend people to avoid prolonged exposure to the sun during peak hours, to consume enough fluids, and to pay increased attention to children, the elderly, and people with chronic conditions.

18.07.2026