● MONDAY, June 24
Government eliminates preferential tax treatment for duty-free stores
The Government on June 24 approved a bill to exclude the VAT, excise duty and customs duty exemptions for goods sold in duty-free stores situated at the entrance to Moldova. Gabriela Cuneva, secretary general of state at the Ministry of Finance, said the given changes are aimed at adjusting the fiscal and customs treatment in relation to goods that are brought into and sold in Moldova, including in the customs control area at the entrance to the country.
● WEDNESDAY, June 26
Economists point to main obstacles that hamper attraction of investment
The main obstacles to the coming of investment to Moldova include the image affected by corruption, the lack of fair justice and the insufficiency of skilled labor force, ex-minister of economy Alexandru Muravski was quoted by IPN as saying in a program on Jurnal TV channel. He stated the country’s administration should make effort to diminish the underground economy that accounts for a large part of the formal economy. “If the underground economy exceeds 40% of the Gross Domestic Products, it can be considered that the state does not exist. This means the state from economic viewpoint does not have instruments to influence the situation,” stated Alexandru Muravsk.
● THURSDAY, June 27
Farmers have waited for law on organic agriculture to be adopted for a year
The adoption of the bill on the development of organic agriculture in Moldova is much overdue. The law was to be passed by Parliament last year and farmers ascertain organic agriculture wasn’t a priority for the MPs. The opinions were stated in an open dialogue that involved business entities operating in the sector and Minister of Agriculture, Regional Development and Environment Georgeta Mincu. Farmer Alexei Micu suggested amending the not yet adopted bill so as to stipulate punishments for the fraudulent use of the terms “ecological”, “biological”, “organic”. “There are already cases when labels that mislead the consumers are placed on products that are not grown according to the principles of organic agriculture for marketing purposes and this creates a false impression that the product is ecological,” he stated.
Natural gas tariff is maintained artificially, minister
Minister of Economy and Infrastructure Vadim Brînzan said the natural gas tariff since March 2018 has been maintained artificially. He told a news conference that the former government, instead of adjusting the tariff to the then realities, cut it because it had savings, but didn’t take into account the fact that the purchase price of natural gas supplied by Russia’s gas company Gazprom increased. According to the minister, the political class had become involved a lot in the economic affairs during the past few years and this led to the distortion of economic processes, determining the artificial maintaining of tariffs. The public utility Moldovagaz already announced that the savings have been used up and the problem of tariffs is again in the focus. “The problem of tariffs existed in 2018 too, but was artificially controlled owing to the then politics,” stated Vadim Brînzan.
Bus fare rates must be reviewed, minister
Fare rates for bus and minibus services must be reviewed, says Minister of Economy and Infrastructure Vadim Brînzan. He told a press conference that the current fare rates have been artificially kept at the 2013 level, and this has prevented carriers from investing in newer and therefore safer vehicles. Minister Brînzan noted that many things have changed since 2013, such as fuel prices and the strength of the leu. The minister assured that vulnerable groups will be protected if fares are increased.
Cancelling citizenship for investment could cost Moldova several million euros, minister
If Moldova decides to cancel the citizenship for investment scheme, the government will likely have to pay several million euros in early termination fees to the consortium hired to implement the program. Economy Minister Vadim Brînzan told a press conference today that the program has been put on hold until all risks associated with it are thoroughly assessed. Vadim Brînzan had a meeting recently with representatives of the consortium, and all expressed their openness to dialog with a view to making the process of awarding citizenship more transparent. The program has been paused for now, as Parliament passed a bill on first reading to annul it.
● FRIDAY, June 28
Russia extends preferential export regime for Moldovan goods
The Government of the Russian Federation decided to extend the preferential export regime for five categories of Moldovan goods that has been applied since January 1 until July 1, 2019, President Igor Dodon was quoted by IPN as saying. According to the presidential press service, the goods that could be further exported duty-free include the fresh vegetables, apples, plums and quinces, apricots, cherries and sour cherries and also cans and wines.
“Good Roads” program placed on hold
The program “Good Roads” was suspended. Minister of Economy and Infrastructure Vadim Brînzan stated he cannot say if this will be continued or not as there are two problems related to its implementation – financing sources and decisional transparency. In a news conference on June 27, Vadim Brînzan said 2 billion lei was earmarked for this program, but the state budget now includes only 950 million lei available for the purpose. As to decisional transparency, the minister noted it is not clear who takes decisions and who manages the program. The formula according to which money is allocated is not clear. “I understood that the mayors were requested to formulate proposals as to the place where they would like to build by 1 km of strategic road that would ensure connection to the main roads. The received proposals envision works to the value of 4 billion lei, while the budget now includes only 950 million lei,” stated Vadim Brînzan.
Moratorium in building sector will affect the economy, minister
Minister of Economy and Infrastructure Vadim Brînzan said he is against instituting a moratorium in the building sector, as it was suggested following the collapse of an apartment building in Otaci town. According to the minister, the building activity had a significant impact on the GDP growth during the first four months of this year. “A moratorium will only annihilate this effect,” the minister was quoted by IPN as saying in a news conference.
● SATURDAY, June 29
Orchard areas decreased, not yet harvest
The areas of orchards diminished compared with the situation 40 years ago because of the felling of old fruit trees. In a response to an inquiry made by IPN News Agency, the Ministry of Agriculture, Regional Development and Environment said the new orchards are smaller in area, but have higher productivity owing to the applied newest technologies and innovatory practices. The Ministry quoted data of the National Bureau of Statistics, noting the orchards in Moldova in 1980 occupied 178,000 ha and the global fruit production was about 637,000 tonnes. In 2018, the orchards were 139,600 ha in area and the global fruit production was 894,200 tonnes. Even if the areas of orchards deceased, the crop rose by about 28.7%.
