Prime Minister Vasile Tofan on Wednesday presented the government’s main proposals for Moldova’s 2027 tax policy. The measures will undergo public consultations in the coming weeks and include both tax relief and higher taxes on selected products and services.
One of the government’s key initiatives is to increase taxation on products considered harmful to health, a move that could lead to higher prices for consumers.
Under the proposal, the excise tax on cigarettes would increase by 20%, while heated tobacco products would face a 15% increase. Excise duties on nicotine-containing e-cigarette liquids would rise by 50%, while nicotine-free vaping liquids would become subject to excise tax for the first time.
The government also proposes introducing new taxes on sugary drinks, energy drinks, and pyrotechnic products. Fireworks and other pyrotechnic goods would be subject to a 25% excise tax based on their value. Gambling activities would face an additional 6% tax.
The proposals also include changes for the HoReCa sector and food products. The VAT rate for HoReCa services, agricultural products, and certain food products would increase from 8% to 12%.
At the same time, the government plans to introduce a differentiated VAT system based on household energy consumption starting on April 1, 2027.
For natural gas, the reduced 8% VAT rate would apply to the first 150 cubic meters consumed each month, while consumption above that threshold would be taxed at the standard 20% rate.
For electricity, the first 100 kWh consumed each month would be exempt from VAT, while any additional consumption would be subject to the standard 20% VAT rate. The government also proposes maintaining the 0% VAT rate for thermal energy.
Alongside the proposed tax increases, the government says the 2027 tax policy will also reduce the tax burden in several areas. The annual personal tax allowance would increase from 29,700 lei to 40,000 lei, raising the tax-free threshold by 10,300 lei per year.
The government also plans to extend the 0% tax rate on reinvested profits to small and medium-sized enterprises (SMEs) with annual sales between 100 million and 200 million lei. At the same time, the dividend tax would increase from 6% to 8%.
The proposal maintains the reduced 8% VAT rate for essential goods and medicines, including bread and dairy products, fresh fruit and vegetables, medicines, and selected pharmaceutical products.
The government will now submit the proposals for public consultation, and officials say they may amend the final version of the 2027 tax policy before approval.