IMF recommends increasing vignette and fuel excise rates

The International Monetary Fund's mission is recommending Moldova to increase vignette and fuel excise rates, Info-Prim Neo reports. IMF Mission Head Nikolay Gueorguiev told a news conference on Wednesday the authorities should review a number of recent and proposed pieces of legislation, in particular, concerning tax exemptions for scrap materials, vignette rates, fuel excise rates, and tobacco products excise rates. “A thorough analysis should be made and a proper balance found. As regards the vignette, the Government should consider both the opportunity of supporting the Budget with extra revenues and any side effects that an increase in rates might cause”, said Nikolay Gueorguiev. The IFM official also spoke about the need to index fuel excise rates, at least to the level of the nominal GDP growth. The rates of the vignette, a road toll imposed since November 1 on cars registered abroad, are 2, 7, 15 and 15 euros for 7, 30, 90 and 180 days, respectively. Initially the Government proposed rates as high as 380 euros for 180 days, but Parliament later revised them following objections from expats.