Context
The food service and modern retail sectors are currently underdeveloped in the Republic of Moldova, due to several factors, including: the informal economy and unfair competition, a relatively small market, increased tax burden, small profit margin, etc.
An effective fiscal policy could become the perfect instrument for both incentivizing new investments and reducing tax evasions, as well as increasing consumption and ensuring overall economic growth.
May 2017
CPR Moldova organizes several meetings with representatives of the restaurant service and modern retail sectors in Moldova.
June 7
CPR Moldova publishes an analysis of the opportunity of reducing the VAT rate on food products, as well as restaurant and catering services, to a value of 8%.
The study focused on elucidating the possible benefits deriving from the VAT adjustment for each individual sector and for the Moldovan economy as whole, as well as on examining the practice of EU countries that have implemented this mechanism.
June 8
CPR Moldova organizes a discussion session with the representatives of the business sector on the opportunity of reducing, to a value of 8%, the VAT rate on food products and food service.
July 5
CPR sends to the Ministry of Finance a letter signed by four organizations on the benefits of the adjustment of the VAT for food stuff and restaurant sector.
July 12
Based on CPR’s study, the local mass-media and the press specialized in accounting and economic topics publish materials with an extensive description of the benefits of a VAT adjustment.
July 31
CPR receives a letter signed by the Deputy-minister of finance, stating that CPR’s proposals were analyzed and might be included on the agenda of harmonization of the Moldovan fiscal legislation to the EU Directives.