---
title: "Moldova extends taxes to breakaway Transnistria in economic push "
url: https://moldova1.md/p/84438/moldova-extends-taxes-to-breakaway-transnistria-in-economic-push
published: 2026-09-01T15:45:00Z
language: en
author: "Olga Mînzat"
section: "Economic"
source: moldova1.md
---

# Moldova extends taxes to breakaway Transnistria in economic push 

> Moldova began phasing in standard value-added tax and excise duties on luxury imports into its breakaway Transnistria region on Tuesday, advancing economic reintegration and curbing cross-border smuggling.

![](https://storage.moldova1.md/images/635c5608-8cba-4e23-938e-1187cb25252c.jpg)

Moldova began phasing in standard value-added tax and excise duties on luxury imports into its breakaway Transnistria region on Tuesday, advancing economic reintegration and curbing cross-border smuggling.

The fiscal alignment applies a 20% VAT and statutory excises to alcohol, tobacco, perfumes, jewelry, precious metals, and pyrotechnics. Revenues are earmarked for a dedicated convergence fund to finance infrastructure and social services across the eastern districts, while future stages will encompass fuel, natural gas, and raw industrial materials.

**Banking hurdles and market adaptation**

Sergiu Harea, president of Moldova's Chamber of Commerce and Industry, said public authorities and business leaders spent months preparing companies for the regulatory shift during an interview on public broadcaster Radio Moldova. A primary operational hurdle remains opening accounts in licensed Moldovan commercial banks to process VAT and excise remittances.

*“It is vital to synchronize tax legislation across both banks of the Dniester River to maintain transparent accounting of business payments,”* said Harea. *“We must assess technical mechanisms and examine how these corporate levies affect the final prices of consumer goods and industrial inputs.”*

**Convergence fund and gradual reintegration**

Moldovan lawmaker Radu Marian, a member of parliament's Committee on Economy, Budget, and Finance, said the phased timeline shields businesses and vulnerable households from sudden economic shocks. He stressed that proceeds channeled into the convergence fund would directly serve residents in the separatist-controlled territory.

*“Applying a uniform tax regime accelerates reintegration, building on the import tariffs introduced on Jan. 1, 2024,”* said Marian. *“These funds must benefit citizens in the eastern districts, where social conditions continue to deteriorate under a separatist administration unable to deliver basic public services.”*

**Anti-smuggling gains and geopolitical obstacles**

Former Deputy Prime Minister for Reintegration Gheorghe Bălan said closing tax and excise disparities eliminates illicit trade networks long entrenched along the administrative boundary. However, Bălan warned that the continued presence of Russian troops, weapons stockpiles, and political backing for Tiraspol remains the central obstacle to full reunification.

*“Chisinau must ensure political, technical, and financial readiness, backing the convergence fund with substantial resources from international development partners,”* said Bălan. *“This gradual process must deliver tangible benefits rather than administrative strain to communities on both banks.”*

Authorities in Tiraspol condemned the tax overhaul as politically motivated and harmful to regional living standards. Civil society groups in the breakaway enclave also petitioned international organizations and Chisinau authorities, warning of severe fallout for local enterprises and residents.

Translation by **Iurie Tataru**