PAS MP Radu Marian put forward a legislative proposal according to which the VAT to business entities of Gagauzia will be refunded from the local budget of the territorial-administrative unit, not from the national budget, as at present. According to the MP, the current law allows for inequity as the budget of ATU Gagauzia consists of taxes and duties paid by local business entities, while the VAT is refunded from the budget of the whole country, IPN reports.
Under the legislation of the Republic of Moldova, the business entities can benefit from the refund of the VAT from the state budget when capital investments are made, goods are exported or the VAT paid on purchased goods is higher than the value added tax on delivered goods. Radu Marian said the business entities of Gagauzia are refunded the VAT from the state budget even if they contribute only to the region’s budget.
“I propose a bill that is designed to ensure increased correctness in the relations between the national public budget and the budget of the autonomous territorial unit of Gagauzia. I remind that the budget of ATU Gagauzia consists of the income tax of legal entities collected on the territory of the autonomous unit, the value added tax on goods and services provided to business entities of the region and excise duties on goods made on the territory of Gagauzia. So, Gagauzia enjoys budgetary autonomy. However, contrary to budgetary and local autonomy, the VAT to local business entities is refunded from the state budget, not from the budget of Gagauzia. So, the unit collects VAT in its budget, but these resources are not used for VAT refund,” stated the head of the Parliament’s commission on economy, budget and finance.
Under the bill proposed by Radu Marian, the taxes and duties to the business entities of ATU Gagauzia will be refunded from the local budget within the limits of the disposable funds. The non-refunded amounts will be covered with state budget funds. The bill author said the implementation of this law will ensure savings of 500 million lei in the national budget the next five years. These funds could be used for the citizens from all over the country, not only for those from the territorial-administrative unit.
