The single income tax in Moldova: what awaits the residents of the country

CHISINAU, July 24 – Sputnik. Tuesday in Moldova has proved to be revolutionary in the part of fiscal policy . The Prime Minister of the Republic Pavel Filip announced the next amendments, that the parliament should consider before the end of this week, namely the introduction of a single income tax of 12%

" The personal liberation will be doubled from 11,280 to 24,000. In practice, those who receive a lower wage at the subsistence level do not pay taxes at all.The result is that citizens have more money in their wallet, "said Philip at a press briefing following the meeting of the Democratic Party, which holds the parliamentary majority

. ] Philip noted that after the government has come to a positive conclusion and that parliamentarians will support this initiative with two readings, the changes will come into effect on October 1, 2018.

The income of the population will increase

Analysts point out, this e Tax will increase the real income of the population of the republic. However, even the drafters of the bill say that with the introduction of this initiative, state budget revenues will be reduced by about two billion lei. At the same time, as the experts think, it will be possible to compensate for this deficit by the fact that individuals and legal entities will move to "white" accounting. Thus, according to badysts, the authorities pursue the goal of gradually reducing an impressive amount of the underground economy.

Too many questions

The economist Galina Shelar told Sputnik that she was very intrigued by the proposal the introduction of a single tax on income, and initiative, which provides for the reduction of contributions to the social fund by the employer from 23% to 18%. According to her, many questions arise as to how the huge deficit, which results from the reduction of these deductions, will be closed.

The expert believes that the government's decision will not help to combat such a phenomenon. According to Shelar, even a 5% fee reduction still remains for the employer and will not encourage it to move to "white" accounting. It did not exclude the possibility that in the event of a shortage of funds in the pension fund, the 5% difference would be transferred to the employee, which would also not encourage him to refuse the pay in the envelope.