Parliament adopts 2013 Budget and Tax Policy

Parliament on Wednesday evening adopted the Budget and Tax Policy for 2013. Among its highlights, the document raises the VAT rate on sugar from 8% to 20%, introduces some new taxes and excises and raises several old ones. Communist and Socialist MPs did not vote for the bill, saying it is poorly thought out, Info-Prim Neo reports. The bill document adds, for next year, an increase from 6 to 8% VAT for natural and liquefied gas. Additionally, the excise tax for tobacco products will be adjusted gradually to the level of the neighboring countries, including those from the EU, which will allow, according to the Government, the accumulation of new Budget funds, as well as diminish tobacco use. The excises for hard liquors will be modified in 2013. Starting next year, the age limit for vehicle registration will also be increased from 7 to 10 years, with higher excises for 8, 9 and 10 year-old vehicles: +5%, +10% and +15%, respectively. Communist MP Oleg Reidman labeled the Policy “antisocial”, criticizing it for increasing fiscal burden. “This bill should not pass; it guarantees stagnation and debt”, said the MP. Socialist Party leader Igor Dodon mentioned that the Policy will worsen the situation for the entire real sector of the economy.