VAT exemptions to be annulled and excises to be increased

The VAT exemption and the customs duty on the fixed assets invested in the social capital of economic entities will be annulled from 2013 in the wake of the extension from January 1, 2012 of the mechanism for refunding VAT on capital investments made in the municipalities of Chisinau and Balti, Info-Prim Neo reports, quoting a bill with amendments to laws concerning the fiscal and customs policies for 2013. The Ministry of Finance estimated this measure at 200 million lei. The bill also suggests introducing a VAT of 20% on primary agricultural production instead of the reduced VAT of 8%, by directly refunding the difference from the state budget so as to avoid the distortion of the general taxation system, simplify fiscal administration and support the agricultural producers. The reduced VAT on natural gas and liquefied petroleum gas is to be increased from 6% to 8% so as to collect additional revenues into the budget and institute only one reduced VAT, which will simplify fiscal administration. The fixed excises will be increased by adjusting them to the inflation rate of 5% projected for 2013. Besides, the excises on tobacco articles will be gradually adjusted to those used in the region so as to augment the budget revenues and reduce tobacco use. The excises on ethyl alcohol containing over 80% of alcohol will be modified according to the European taxation system. As the age limit of the vehicles allowed to be imported into the country will be raised from 7 to 10 years, the excises on cars older than 7 will be increased by 5% for every year after the age of 7.