Indirect taxation is necessary, but proposed mechanism is unclear, analyst

The indirect taxation of persons is necessary, but the proposed mechanism contains shortcomings and is not sufficiently clear, considers Alexandru Fala, economic expert of the Institute for Development and Social Initiative “Viitorul”, Info-Prim Neo reports. “The main argument of those who do not support this initiative is that the Tax Inspectorate or those who will determine what taxes must be paid to the state will be very subjective. The bill does not clearly define the taxation method. It only says that taxation will be based on the information provided also by other organizations, not only the Tax Inspectorate,” said Alexandru Fala. He also said that many people in Moldova do not hold high-ranking posts and do not have very high salaries, but they have luxury houses and cars. “It is very interesting how they obtained this property – legally or illegally, and if they paid all the taxes. That’s why a clear mechanism is needed. The proposed mechanism is rather unclear,” said the economic analyst. The indirect taxation was included in the budgetary-fiscal policy formulated by the Government. It aroused controversy inside the ruling alliance. In a meeting of the parliamentary commission on economy, budget and finance, the lawmakers of the PDM, PL and PCRM voted in favor of postponing the implementation of indirect taxation until the procedure is specified. The Liberal-Democratic MPs asserted this conceptual modification in the budgetary-fiscal policy represents a vote of no confidence given to the Government and threatened they will not attend the legislature’s sittings if the bill is not passed by Parliament in the form presented by the executive.