UTA Gagauzia will have to return taxes and VATs from its own budget
President Maia Sandu promulgated the draft law by which UTA Găgăuzia will have to return taxes and VATs from its own budget, and not from the national one. The decree promulgating the law was published today in the Official Gazette.
At the beginning of this month, the Parliament voted in the second reading on a project to amend the Fiscal Code which stipulates that the Gagauz autonomy will have to return taxes and VATs from its own budget, within the limits of available revenues.
An analysis of the situation found that the VAT amounts returned from the state budget are constantly increasing and, in the last five years alone, the state budget reimbursed more than 640 million lei as VAT amount to the autonomous territorial unit. Thus, the legislative initiative will ensure compliance with the principle of fiscal equity among the country's localities. The legislative amendment is to enter into force on November 1, 2023.
Action and Solidarity party deputy Radu Marian, one of the authors of this project, anticipated that, following the implementation of these changes, in the next five years, savings of about 500 million lei will accumulate in the state budget, money that will be invested in the development of other localities.
We remind that at the stage of approving this project, Prime Minister Dorin Recean emphasized that in this way equity is established between the national budget and that of the Gagauz autonomy.
