Tax Amnesty, Capital Legalisation and the “Zero” Tax Rate
Automatically translated summary. The full text is available in Romanian.
This Independent Think Tank “Expert-Grup” paper analyses the potential impact on Moldova's economy of capital liberalisation, a tax amnesty and a zero tax rate on reinvested income. The initiatives were launched by the country's President in April 2007. The document is available only in English.
Since the reforms had already been launched, the authors focus on analytical elements that could help maximise the positive effects the authorities expect. They stress that, more than fiscal experiments, Moldova's economy needs an effective justice system, the eradication of corruption, fair competition and a simplified system for regulating business activity.
The paper also calls for better public communication, so as to convince the wider public of the Government's determination to implement the Fiscal Code and not to pursue criminal prosecution of the holders of legalised capital. Finally, it argues that privatisation and restructuring of the public sector must continue in order to prevent the accumulation of new tax arrears in the future.
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