Gagauzia is the only local administration unit that cancelled the debt owed to the local budget

The Autonomous Territorial Unit of Gagauzia is the only local administration which, suggested by the Government, forgot the debt liabilities of the economic agents. The head of Main State Tax Inspectorate (IFPS), Sergiu Puscuta, stated that the authorities in Gagauzia have cancelled debts totalling about 89 million lei. According to him, other territorial units examine the possibility as well. “Tax amnesty was delayed by the local elections, which took place during the same period of the amnesty applied by the central authorities”, said the cited source. He hopes that this autumn, more local authorities will take the decision to cancel the debts. The law on tax amnesty provides exemption from all the liabilities owed before January 1 to the state budget, the social fund and health insurance fund, and only recommends the local authorities to enforce amnesty on debts owed to local budgets. The State has already forgiven taxpayers’ debts totalling about 4 billion lei. On August 1 all the entries on liabilities in the recording systems of the State Tax Service, the National Social Insurance Fund (CNASS) and the National Health Insurance Fund (CNAM) were cleared according to the situation on January 1, 2007 and unpaid by May 11, 2007. The debt owed to the state budget, totalling 3.1 billion lei, was cancelled for about 32,000 tax payers; 948 million lei were cancelled for 277,000 payers of social insurance taxes; 8.3 million lei were cancelled for 7,000 economic agents paying health insurance contributions.