--- title: "Moldova raises electricity VAT-free cap to 150 kWh " url: https://moldova1.md/p/87722/moldova-raises-electricity-vat-free-cap-to-150-kwh published: 2026-10-15T10:24:00Z language: en author: "Dumitru Petruleac" section: "Economic" source: moldova1.md --- # Moldova raises electricity VAT-free cap to 150 kWh > Moldova’s government has approved 27 amendments to its 2027 fiscal policy, raising the zero-rated electricity VAT threshold, increasing personal tax allowances and retaining reduced VAT for grain products. ![](https://storage.moldova1.md/images/afb8e1e2-910f-41e9-9431-8cf14bfd4617.jpg) Moldova’s government has approved 27 amendments to its 2027 fiscal policy, raising the zero-rated electricity VAT threshold, increasing personal tax allowances and retaining reduced VAT for grain products. **Higher personal income tax allowances** The annual personal income tax allowance will rise from 34,620 to 46,680 Moldovan lei (MDL), while the allowance for dependants will increase from 9,900 to 11,040 MDL. The changes form part of a revised fiscal package that incorporates 27 of the 87 amendments proposed during public consultations. Individuals will also be allowed to deduct eligible sports-related expenses from taxable income, State Secretary at the Finance Ministry Corina Alexa said. Tax on investment income earned abroad will fall from 12% to 8%. “Currently, investment income received from outside the Republic of Moldova is taxed at 12%. We are reducing this tax burden from 12% to 8%. This ensures an incentive-based approach to retaining foreign investments and increasing individuals’ investment capacity,” Alexa said. Trade unions and employers’ organisations will retain their income tax exemption, provided they use their revenue for statutory purposes. **Zero-rated VAT on first 150 kWh of electricity** The government has raised the proposed zero-rated VAT threshold for household electricity consumption from 100 to 150 kilowatt-hours (kWh) per consumption point. The measure is scheduled to take effect in April 2027. A reduced VAT rate will also apply to natural gas consumption of up to 150 cubic metres, according to Prime Minister Vasile Tofan. “We proposed a zero VAT rate for the first 100 kWh starting in April 2027. Following further calculations, it was recommended that we increase the threshold. Therefore, the first 150 kWh of electricity will be taxed at zero VAT,” Tofan said. He added that the 150-cubic-metre threshold for natural gas would be retained under the reduced tax rate after April 2027. **Grain VAT rate retained at 8% until 2028** The government has retained the reduced 8% VAT rate for grain products and planting material, reversing its initial proposal to increase the rate to 12%. The decision follows criticism and protests by farmers. “We proposed 12%, but we listened to farmers’ criticism and kept the VAT rate at 8%. We understand that we are still facing a challenging period,” Tofan said. A reverse-charge mechanism will also apply to transactions involving grain products between VAT-registered businesses. The Finance Ministry says the mechanism is intended to improve predictability for businesses and facilitate VAT recovery under the law. The government has abandoned its proposal to reduce VAT on eggs and poultry meat. The standard 20% rate will remain in place for those products. **New taxes on gambling operators and stakes** The revised policy introduces two levies on gambling: a 6% tax collected when players deposit their stakes and a 25% tax on operators’ gross revenue. To illustrate the latter, Tofan said that if an operator collected 100 lei and paid 80 lei back to players, the 25% levy would apply to the remaining 20 lei. The prime minister also called for stronger action against unlicensed gambling websites, saying authorities needed to cooperate with the National Bank of Moldova and the Information Technology and Cyber Security Service (STISC) to block their operations. **Customs relief for renewable energy investments** Investors purchasing electricity storage equipment or renewable energy generation equipment will be eligible for a 20-month grace period to defer customs duties and excise payments. If the equipment is commissioned and the required grid-connection approval is obtained within that period, the customs debt will be extinguished under the proposed mechanism. **Changes to local taxes and utility compensation** Local authorities will be required to adopt annual decisions setting specific local tax rates. If no new decision is adopted, the most recently approved rates will remain in force. For property tax, the minimum rates set by the Tax Code will apply in the absence of an annual decision. The Finance Ministry puts the minimum rate at 0.05% of the property’s value. The government will also maintain utility cost compensation for residents of Hârbovăț, Fârlădeni and Hagimus in the Security Zone until April 1, 2027. **Government outlines priorities for 2027 tax policy** Tofan said the reform focused on four priorities: reducing taxes on labour and investment, removing exemptions that create opportunities for tax evasion, increasing levies on activities considered harmful, and simplifying the Tax Code. “The priority of this reform was to tax labour and investment less,” Tofan said, adding that the government also intended to increase taxes on gambling and sugar-sweetened drinks. The 27 amendments approved by the government will be submitted to Parliament for consideration. Most provisions of the 2027 fiscal and customs policy are expected to take effect on January 1, 2027, subject to the legislative process. Translation by **Iurie Tataru** **RELATED COVERAGE** - [Moldova approves 2027 fiscal package to generate €255m](https://moldova1.md/p/84888/moldova-approves-2027-fiscal-package-to-generate-255m) - [Moldova to raise personal tax allowance and tobacco excises](https://www.moldova1.md/p/85512/) - [New fiscal policy draft was submitted to the IMF, Finance Minister seeks additional budget sources](https://moldova1.md/p/82975) - [Moldova plans temporary bank tax hike to 18 percent](https://moldova1.md/p/82848/moldova-plans-temporary-bank-tax-hike-to-18-percent)