Democratic Party of Moldova

Press release

24 July 2019

Sandu-Nastase-Dodon government get their hands in people's pockets to accumulate budget revenues

Sandu-Nastase-Dodon government get their hands in people's pockets to accumulate budget revenues

Maia Sandu's Government, created by Kozak Alliance (PSRM-PAS-PPDA), is unable to accumulate budget revenues using intelligent measures. They lay the burden on the business and get their hands in people's pockets. This is the conclusion expressed by the deputy chairman of PDM's faction, Vladimir Cebotari, during a press briefing today, following fiscal measures that minister of finance, Natalia Gavrilita, announced yesterday.

More precisely, the democrat referred to the intention of the Ministry of Finance to return to 20% VAT for HoReCa, after last year PDM government reduced this tax to 10% to stimulate economic entities to give up shadow economy, to create new small and medium companies, to generate new jobs.

"I was deeply marked by the intention to increase taxes for HoReCa. Economic entities were happy to be able to go legal, not to be afraid of inspections any longer and still have something left to make a living. We encouraged many families to start a small business. For many people that was a chance to come back home, to repair the grandparents' house and use it to engage in agritourism.  This antireform reverses all these. If this measure is voted, families that opened a small touristic pension will only have the option to shut down their business, "go into the red" or go illegal", said Vladimir Cebotari. 

In the same context, parliamentarian gave the example of Romania, a country where the industry of tourism is much more developed and the VAT is 9 and 5%. "I cannot understand their thinking and the way these decisions were made. I do not understand who they talked to and who they consulted, because business people are not aware of this and were equally shocked yesterday."

Another initiative that the deputy chairman of PDM's faction criticized has to do with cancellation of lunch tickets.

"Presently, 50 thousand people receive lunch tickets, on top of their salary. Yes, the state does not tax these payments, but it also incurs no costs. Lunch tickets were another way to stimulate improvement of every person's well-being. If lunch tickets are cancelled, the authorities will literally have their hands in people's pockets. We believe that this is a major problem", Cebotari underscored.

Vladimir Cebotari compared these measures with revanchist, absolutely unreasonable moves that the Bolsheviks made in 1917 and immediately after, when they destroyed things and built nothing.

"If there are mistakes in some projects, let us work on them and improve them. Why should we destroy? I do not understand Government's priorities concerning improvement of people's well-being", said Cebotari.

With regard to these fiscal measures, the democrat reminded that PDM took government in 2015 with a huge hole in the budged and still had not increased a single tax. Moreover, having started with a budget of cca 45 billion lei in 2016, PDM managed to get the country out of crisis and accumulate more and more money in the state budget every year. Ultimately, we reached a budget of 63.5 billion lei forecasted for 2019, leaving to Sandu Government 3.3 billion lei in the state budget, after all invoices have been paid.

"We have learned that one must not cut costs by all means, one must be smart to increase revenues by all means. This is what guided us in the time before this government. We have increased revenues not by increasing taxes, but by reducing them. We managed to bring into legal field a large part of shadow economy. We were smart enough to find money for serious investments in infrastructure and quality of life. I cannot find logical and healthy explanation as to why this Government cannot find money."

In this sense, Vladimir Cebotari criticized the way in which PSRM-PAS-PPDA government makes such decisions: "I would like to ask a very serious question to our development partners. Where are you? Does this mean transparency? We had draft laws, which were in discussion for six months. We would have tens of visits, would see everyone, would achieve extraordinarily broad consensus and would be criticized. Is this the way to make such important decisions? Is this participatory democracy? Having things appear overnight? Nobody discusses them. Is this what we have been fighting for? Such things did not happen even in the time of communists, who were criticized quite harshly. I hope that this government will make corrections. They are not fighting against PDM, against PDM's policies, they are fighting against their own citizens", said the member of PDM's parliamentary faction. 

Finally, deputy chairman of PDM's faction urged Sandu-Nastase-Dodon alliance not to take advantage of the time when people are on vacation to make decisions that will cost the country much.