Comment on the Legislative Initiative to Abolish the Duty-Free Regime in the Republic of Moldova

The authors cite fiscal fairness, budget losses, distorted competition, alcohol and tobacco consumption and smuggling. Expert-Grup accepts some of these points but notes that tax exemptions for exports are standard, that high prices stem from weak competition, and that smuggling risks are largely addressed. The EU kept duty-free for external travel and allowed a 7.5-year transition. The claimed MDL 2 billion in extra revenue is overstated: Chișinău airport handles about 20% of international passenger traffic, so gains would reach at most MDL 0.4 billion a year, and sales would likely shift to foreign airports, harming the airport, transport and tourism.

The commentary supports abolition only if other countries in the region do likewise. It recommends negotiating a synchronised phase-out and, meanwhile, auctioning airport duty-free rights (the licence fee is only MDL 3,250), enforcing existing rules against smuggling and corruption, and preparing better-argued explanatory notes for bills.