Tax collection on real estate is still managed by local authorities

Starting 1 January 2007, the collections resulted of taxes on land and property is still managed by the local public bodies of first level. This provision is included in the pack of legislative acts regulating the activity of the local public administration, to be examined by the Parliament in first reading till the end of July 2006. According to a Parliament’s press release, speaker Marian Lupu announced about this during the recent meeting with the administration of Orhei raion. The amendments will be made to the Law on decentralization, Law on local public administration, as well as the Law on local public finances. The changes to the legislation in force will allow creating certain clear and well-defined regulations linked to the relations between the central and local public administration bodies and, at the same time, consolidating the local financial autonomy, the speaker mentioned. According to him, while drafting the pack of legislative acts it was taken into account the proposals made on behalf of the regional authorities. Local public bodies of II level will manage the income tax of natural persons and legal entities, excepting the municipalities Chisinau and Balti, which will benefit of 50% of the collections of these taxes. At the same time, the funds collected from VAT and excises remain in the competence of central public administration. The member of the Special Commission for Strengthening the Local Public Autonomy, responsible of the economic-financial sector, Nicolae Bondarciuc, mentioned recently that implementation of these provisions would be done gradually, in order to provide the Government with enough time for making the necessary calculations for achieving these objectives and identifying the mechanism of direct transfer of resources of the state budget to the local public bodies of I and II levels.