President Igor Dodon said he decided to promulgate the package of laws enabling a sweeping amnesty of unpaid taxes and undeclared assets, together with the introduction of a 12% flat tax rate on individual income. He wrote on his official FB page that he took into account opinions voiced by experts, the academic community, and both domestic and foreign opinion makers.
The president argued the adopted measures would spur the country’s economic growth, with his only regret being that they come too late. “The main conclusion that can be derived is that the government understood the mistake they made by abandoning the 2007 reform. They now try to tow the sunken ship of Moldovan economy into a canal of growth. After ten years, those in power finally have come to apply the economic solutions they once criticized.”, declared Igor Dodon, apparently referring to a similar package adopted by the Communist government in 2007 and which had a predetermined lifespan of one year.
The president further argued that more competitive conditions are needed to attract investment into the Moldovan economy, to develop the business community, create jobs, increase exports of goods and services, unless the new government wants to continue the practice of “calling for alms from the West or elsewhere”. “This shameful practice must be stopped and I assure you this is exactly what we will do in the nearest future, to the benefit of Moldova and its citizens”.
The package was swiftly adopted in late July just days after being announced by the governing Democratic Party. Civil society members as well as foreign partners like the EU, US, the World Bank and IMF met the package with criticism. In particular, the tax amnesty component has been criticized for weakening fiscal discipline, and the capital amnesty was condemned as opening doors for dirty money, including proceeds of the 2014 massive bank fraud.
