FISCAL POLICY 2027: how much will these changes cost each family in the Republic of Moldova?
The Civic Movement “Construim Încredere” warns that the package of fiscal amendments proposed for 2027 transfers a significant part of the tax burden directly onto citizens, young families, farmers and local businesses — while the authorities speak only about additional budget revenues, but remain silent about the bill that will ultimately reach people’s homes.
Key findings
A wave of VAT increases and new excise duties will simultaneously affect essential everyday expenses:
Electricity: VAT increases from 0% to 20% — the bill of a family consuming approximately 200 kWh per month could increase by more than MDL 1,700 per year.
Natural gas, firewood, food products and medicines: VAT increases from 8% to 20%.
Products for infants and young children: the VAT exemption is eliminated — in a country already facing depopulation and declining birth rates.
Housing and online purchases through Temu, AliExpress and Shein: VAT exemptions are cancelled and the standard 20% rate is applied.
Fuel, motor vehicles and soft drinks: new or increased excise duties are introduced, which will be transferred into prices throughout the economic chain.
HoReCa and agricultural machinery: 20% VAT, with a direct impact on small businesses and agricultural investments.
How much will this cost an ordinary family?
For basic expenses alone, the estimated additional cost for a typical family is:
| Category | Estimated additional annual cost |
|---|---|
| Electricity | +MDL 1,700 |
| Natural gas | +MDL 1,600 |
| Firewood | +MDL 700 |
| Fuel | +MDL 1,380 |
| Food products | +MDL 4,800 – 7,200 |
| TOTAL | MDL 10,180 – 12,580 per year |
This means an additional MDL 850 to 1,050 every month. When medicines, children’s products, HoReCa, motor vehicles and housing are also included, the real impact could easily exceed MDL 15,000–20,000 per year.
Our concerns
Lack of transparency: The Government has not presented an impact assessment on the population and household budgets. Citizens are learning from independent estimates what should have been explained by the authorities themselves.
Underestimated cumulative effect: taken separately, some increases may appear bearable; applied simultaneously, they generate a significant increase in the cost of living for hundreds of thousands of families.
Agriculture: applying the standard 20% rate to all agricultural production would be a harsher option than what is necessarily required by the VAT Directive 2006/112/EC. Important note: the IMF communiqué of 20 May 2026 does not expressly impose this measure — the link with the PCI agreement remains a hypothesis.
Taxation of capital gains: without recognising investments made over time and without indexation to inflation, citizens risk being taxed on an artificial gain rather than a real one.
Housing: there is a risk that some developers may use the new VAT regime as a pretext for general price increases far above the actual fiscal impact.
Requests of the Civic Movement “Construim Încredere”
We do not contest the need for fiscal reforms. However, we call for transparency, genuine consultations and a full assessment of the social and economic impact. We request the authorities to:
publish the official analysis of the impact on the population and the economy;
organise genuine public consultations with citizens, farmers, the business community and civil society;
publish the analysis of the impact of increasing the corporate income tax from 12% to 15% on competitiveness, investments and the development of local enterprises;
introduce the new rate for legal entities gradually or establish mechanisms to encourage profit reinvestment;
provide gradual and balanced solutions for vulnerable sectors and social categories;
establish clear transitional rules regarding dividend taxation, in order to avoid retroactive or unpredictable application of the new rates;
clarify the VAT refund regime for balances accumulated before 1 January 2027;
analyse the possibility of introducing a non-taxable threshold for cash donations between individuals;
assess the cumulative impact of all amendments on the cost of living.
Before asking people to pay more, the state must have the courage to tell them honestly how much it will cost. Because trust is built through truth — not through surprises hidden in bills, fiscal receipts and higher shelf prices.
The full text of the declaration can be consulted below.