The Constitutional Court Tuesday ruled that the provisions on the capping of local taxes are unconstitutional. The Court pronounced on the matter following a challenge submitted by Liberal MPs, IPN reports.
During deliberations, one of the authors of the challenge, MP Valeriu Munteanu said that before the capping, the largest store in Chisinau paid over 1 million lei taxes. Afterward, it was to pay only 18,000 lei, as those who have by only one stall. According to estimates, the capping of taxes would have caused damage of several thousand to several million lei to the local budgets.
Deputy Minister of Finance Victor Barbaneagra told the journalists that the capping of taxes is anyway necessary so as to ensure equity between economic entities and to avoid abuses on the part of representatives of the local authorities.
The provisions on the capping of local taxes were included in the budgetary-fiscal policy as amendments for the second reading, without the appraisal of the Government. They were passed by the parliamentary majority on December 23.
Afterward, mayors and representatives of the local authorities said these provisions cause damage to the budgets approved by the local councils. On the other hand, a group of businessmen stated they are for capping the local taxes as this can protect them from the abuses of mayors and councilors who promote their own interests.
