The Socialists disputed in the Constitutional Court the law that obliges the Autonomous Territorial Unit of Gagauzia to pay VAT from the local budget, which is to take effect on November 1.

According to MP Grigore Novac, the given law should be suspended as it is unconstitutional. Discussions with representatives of the administration of Gagauzia and with members of the commission involved in the harmonization of projects in the region hadn’t been held. The authorities divide the citizens and destroy the dialogue built during such a long period of time.

MP Fiodor Găgăuz said the law by which Gagauzia is obliged to refund VAT and excuse duties to local entrepreneurs from the local budget is evidently discriminatory in character.

According to him, the VAT and excise duties for business entities are a stimulatory measure that enables to sell products outside the country. This tax has always been refunded from the state budget and the adopted decision is absurd. The law was given a first reading without being discussed with the authorities of Gagauzia. Pseudo-consultations were later held with deputies of the People’s Assembly of Gagauzia, but the arguments of the deputies were ignored in these. The law runs counter to the legislation on normative documents, which says that all the amendments made to the Tax Code take effect in six months of their publication in the Official Gazette.

Deputy of the People’s Assembly of Gagauzia Elena Yurchenko said that this law will cause serious damage to Gagauzia. The local budget loses over 100 million lei. Most of the social programs implemented in Gagauzia today, including those intended for young families and concerning food for students, are under threat. Maia Sandu in 2020 promised to be the President of everybody, while the inhabitants of Gagauzia are citizens of the Republic of Moldova.

The decree to promulgate the law that supplements Article 6 of the Tax Code with provisions saying that ATU Gagauzia will have to refund the VAT and excise duties from the own budget not from the national public budget as until now was published in the Official Gazette on October 21.