The survey data shows that the application of a 20% VAT on electricity is the main concern for 32.2% of respondents. The increase in VAT on natural gas is mentioned by 21.7%, while the increase in VAT for medicines – by 13.7%. Other measures, such as the increase in VAT for agri-food products and firewood, are indicated as the main concerns by approximately 8% of survey participants.

In a press conference, IMAS Director General Doru Petruti stated that most of the measures included in the tax reform are rejected by the population. According to him, the level of opposition to some changes exceeds 70%, and in some cases reaches over 90%.

The survey shows that 65% of respondents do not support the fiscal reform at all, and 15% claim to support it to a small extent. Furthermore, 38% believe that the Republic of Moldova does not need such a reform in the upcoming period.

Doru Petruti argues that, although the level of rejection of the reform is high, about a third of respondents believe that the country needs a tax reform. In his opinion, this result indicates that the authorities have failed to adequately explain the purpose and benefits of the proposed changes.

When asked about the purpose of the reform, most respondents believe that the Government aims to cover up a flawed management of public funds and accumulated debts. At the same time, 41% say the reform should be cancelled, and 30% believe it should be postponed for additional consultations and analyses. Only 1% of respondents support the implementation of the reform in its presented form.

The socio-political barometer IMAS was conducted during the period of July 10-20, on a sample of 1,015 individuals from 81 localities. The maximum margin of error is ±3.1%. The research was commissioned by Independent News (Romania).

Note: IPN Agency offers the right to reply to persons who consider themselves targeted in news reports based on the statements of the organizers of this press conference, including by facilitating the organization of another press conference under similar conditions.

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The defendants were found guilty of VAT fraud, issuing and using false invoices for non-existent operations worth 500 million euros, and other related tax offenses. The court ordered the confiscation of assets that had been seized during the investigation. These include cash, financial assets, and luxury goods worth over 1.1 million euros in total.

Judges have also issued seizure orders against convicted individuals and companies, related to the revenues obtained from offenses, however, the EPPO did not indicate the total value of these additional measures.

According to the investigation, the convicted individuals operated from 2018 to 2023 through a network of phantom companies that issued invoices for non-existent transactions, without reporting the collected VAT. Other companies in the network then requested the refund of the value-added tax. The estimated damage is approximately 100 million euros for invoices of half a billion euros.

The investigation was conducted by the Italian economic police under the coordination of the European Prosecutor’s Office and with the support of Europol. The law enforcement operation took place last year and led to the arrest of 13 suspects and seizure measures executed in Belgium, Hungary, Italy, Latvia and Slovakia. According to prosecutors, the trials of two other defendants continue in court.

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Gavrilita admits that he made mistakes during his term, but says that one of the biggest challenges was trying to promote one of the most difficult reforms during a complicated period for governance. He claims to have been left with “a bitter taste” after the experience lived in the public space, criticizing the spread of false information both on social networks and in the media.

The former minister appreciates that the time spent on social networks, including by public officials, contributes neither to economic development nor to increasing the efficiency of the administration.

In conclusion, Andrian Gavriliță asserts that he will continue his work in support of the Republic of Moldova, regardless of the position he will hold. He maintains that the economy needs to be transformed from one based on consumption to one oriented towards investment, and public services must be centered on citizens. At the same time, the former minister wished success to the members of the new governmental team.

Andrian Gavrilita was part of the Government led by Alexandru Munteanu and was one of the promoters of the fiscal reform project for the year 2027. The proposed package, which includes changes to the VAT and the taxation and social contributions system, has generated criticism from the business environment, farmers, and unions, and the Government has withdrawn the project for additional consultations.

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The executive director of the association, Alexandru Slusari, stated that the protests on June 24 and 25 were suspended on the condition that, by June 30 at the latest, the authorities would make their position on the VAT quota in agriculture public. According to him, so far, the farmers have not received an official response from the decision-makers.

Alexandru Slusari stated that, during discussions with the Parliament’s president, representatives of the “Farmers’ Force” association and some deputies of the ruling party presented arguments in favor of maintaining the VAT rate of 8% for agricultural production. Previously, at a meeting organized by the Ministry of Agriculture and Food Industry, all associations in the agri-food sector spoke out against raising the rate to 20%.

According to the association, public statements regarding the resumption of consultations on fiscal-budgetary policy are not sufficient. Farmers demand an official position from the Government and warn that a VAT increase would put additional pressure on agricultural producers, especially on micro, small and medium-sized farmers.

Alexandru Slusari stated that, although the harvesting process has already begun, farmers from several districts reserve the right to resume massive protests in various forms, if the authorities do not come up with a solution.

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In a press briefing, Deputy Dorin Pavaloi stated that the increase in production costs and the negative effects of climate changes in recent years justify the need to create a loan guarantee fund in agriculture.

Present at the briefing, the former Minister of Agriculture, Ion Perju, pointed out that the farmers’ protests are an alarm signal for the entire society. According to him, the income from agriculture no longer covers the production costs, and the farmers’ debts continue to rise.

Among the measures proposed by the PSRM faction for the recovery of the sector are the income tax exemption for agri-food enterprises with a complete value chain, the application of a single VAT rate of 8% on the entire agri-food chain, as well as capping the commercial mark-up on phytosanitary products and fertilizers.

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“The purpose of the tax reform is to collect a uniform VAT from everyone, both from those who can pay and those who cannot, and through social policies to help the most needy. The exemptions that have been so far, reduced VAT in some sectors, favor those with higher incomes. But for me, as the Minister of Labor and Social Protection, it is important that this reform also comes with greater social protection”, declared Natalia Plugaru during the show “Cabinetul din Umbră” on JurnalTV.

According to her, the revenues collected from taxes and duties are essential for financing public services. However, the minister explained that the reform does not imply a complete redistribution of the money collected in the form of social assistance.

“As a state, in order to develop medical services, roads, infrastructure, where do these things come from? From public money, from taxes and duties, collected from entrepreneurs and individuals. In order to invest in services, you need to accumulate this money. It’s not about giving back everything we collect now through social assistance, social assistance now is very targeted”, Natalia Plugaru further said.

She rejected the perceptions that social aids are granted without strict criteria and stated that the current system conditions the provision of social assistance on the beneficiaries’ efforts to engage in the workforce.

“I know there’s the perception that we give social aid to everyone and some consume alcohol. But it’s not like that anymore. If you don’t get a job in a few months, the social aid is cut off. The unemployment benefit is the same. If you’ve been unemployed for a few months and haven’t found a job, the unemployment benefit is cut off”, the minister added.

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Initial news: Access to the Leuseni and Sculeni border crossing points is temporarily blocked due to protests organized by farmers. The police claim that the organizers and operators of agricultural machinery are not cooperating with law enforcement, while some farmers accuse the police of having prevented them from taking their tractors to the protest and of having confiscated the documents of some drivers, reports IPN.

The Border Police announces that vehicle traffic to the two border crossing points is currently not possible. Authorities recommend drivers to use alternative routes to the customs points Cahul-Oancea, Giurgiulesti-Galati and Leova-Bumbata.

According to the General Inspectorate of Police, law enforcement officers are present at the scene to maintain public order, prevent the blocking of border points, and facilitate traffic flow. Moreover, the GIP urges protest participants to respect the instructions of the law enforcement agencies and to avoid actions that could disrupt circulation.

On the other hand, some farmers claim that the police would have entered private properties and would have prevented tractors from leaving for the protest sites.

Farmers have announced that they will continue the protests that began on Wednesday, as they are dissatisfied with the authorities’ plan to raise the VAT rate in the agricultural sector from 8% to 20%. The Farmers’ Force Association has requested emergency meetings with President Maia Sandu and Parliament Speaker Igor Grosu to find solutions to the demands they have put forward. Subsequently, the association’s leadership announced that the meeting with the speaker of Parliament was scheduled for 12:30 PM.

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In the context of the announcement regarding the continuation of protests, the General Inspectorate of Police warned that the unjustified blocking of roads or border crossing points contravenes legislation. Law enforcement recommends drivers to avoid, as much as possible, traveling through the Leuseni and Sculeni crossing points and to use alternative routes. At the same time, the Police urged the organizers and participants to conduct the demonstrations peacefully and without disrupting traffic.

According to the Farmers’ Force, over 250 tractors and several hundred farmers from 21 districts took part in Wednesday’s protest. They expressed their dissatisfaction with the plan to raise the VAT rate on agricultural production from 8% to 20%, calling for the reduced rate to be maintained, direct payments per hectare for micro, small, and medium-sized farmers, and a full refund of the diesel excise tax this year.

The organization asserts that, during a meeting held at the Ministry of Agriculture, the profile associations unanimously rejected the proposal regarding the VAT increase. According to the farmers, the sector’s representatives believe that such a measure would affect agricultural producers and could lead to the price increase of food products.

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The “Farmers’ Force” Association specifies that protest actions took place on several routes throughout the country, including in the districts of Soroca, Falesti, Ungheni, Orhei, Rezina, Criuleni, Causeni, Stefan Voda, Hancesti, Leova, Cimislia, Basarabeasca, and Cahul.

The main grievance of the farmers pertains to the fiscal-budgetary policy project for the year 2027, currently under public consultation. The farmers are calling for a reexamination of certain provisions regarding the application of VAT and taxation mechanisms, which they believe could generate additional costs for agricultural producers.

In the context of the protests, the Minister of Agriculture and Food Industry, Ludmila Catlabuga, stated that the farmers’ demands are being analyzed and discussed with the Ministry of Finance, with the aim of identifying a common position. According to her, farmers are asking for more clarity on the proposed tax changes.

The Minister stated that the authorities are collecting and analyzing proposals from the agricultural sector for potential adjustments to fiscal policy. She also mentioned that experiences from the European Union are being examined, so that the solutions can meet both the needs of the farmers and the budgetary objectives of the state.

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The greatest concern of investors is related to the elimination of certain facilities that will directly hit the pockets of the population. The state wants to eliminate the VAT exemption for electricity and to increase the VAT on natural gas from 8% to the standard rate of 20%. Experts from the association have estimated that just the change in electricity will cost citizens over 720 million lei annually. The increase in energy prices will cause a chain effect and will lead to a rise in prices for bread, milk, and all basic products.

Another blow that will have a social impact is the plan to increase the VAT on medicines from 8% to 20%. Although the Government says it will expand the list of compensated medicines, AmCham warns that all other products in pharmacies will instantly become more expensive. The Association notes that, in terms of wage income, all social insurance contributions will be transferred to the employee, instead of being shared with the employer. Also, investors warn that the system is unclear, disrupts calculation programs, and risks taxing the same workers’ money twice.

The Association criticizes and limits social packages. The state wants meal vouchers, holiday vouchers, medical insurance, and courses offered by the employer to not exceed, together, 10% of the company’s wage fund. Moreover, the requirement for companies to report the home address of employees receiving aid greater than 10,000 lei violates the new European rules on personal data protection.

On the other hand, AmCham welcomes the introduction of the measure to exempt reinvested profits from taxation, the capping of local taxes, the elimination of social contributions for meal vouchers, and the extension of VAT refunds. The Association reiterates that the private sector desires in-depth consultations with the Ministry of Finance. Business people insist on organizing extensive debates on each provision, so that the final version of the law brings predictability and stability for investors.

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