The Fiscal Code was supplemented with a new article, which says that the Value Added Tax (VAT) applied on capital investments, except for the investments in housing and in transport units, will be refunded. The given article applies to the economic entities subject to taxation that make capital investments in the country’s settlements, except the municipalities of Balti and Chisinau, from January 1, 2008. The economic entities that made capital investments in towns and in the municipality of Comrat will get back the VAT if the value of the VAT for a certain fiscal period is higher than 100,000 lei. The VAT will be paid back within 45 days of the date when the economic entity filed an application to the State Fiscal Inspectorate. The tax is restituted in exchange for the debts that the economic entities owe to the national public budget, except for the fiscal obligations administered by the customs authorities. If there are no debts, the amount of the restituted VAT is transferred on the economic entity’s account. Also, the economic entities liable to taxation that make capital investments will have to register at the Fiscal Inspectorate as payers of VAT. The registration is relevant to the economic entities from towns and the municipality of Comrat if the VAT for tangible assets and services related to investments is larger than 100,000 lei. The value of the VAT for companies from villages and communes must be higher than 1 leu. Economic expert Veaceslav Ionita told Info-Prim Neo that the VAT on investment started to be applied in Moldova in 2005, not taking into account the practice of the developed countries. This experience for Moldova meant only economic deterioration because the state should first allow the economic entities to develop and start collecting taxes afterwards, the expert says. Moreover, this tax affects the consumer because the VAT applied by the state on the imported goods influences directly the production costs. Ionita expressed his hope that the authorities will soon decide to cancel this tax in the municipalities of Chisinau and Balti.