The authorities propose to tax interest at 7 percent. What the experts say
The interest obtained from bank deposits will not be taxed at 12 percent, as was originally proposed in the budget-fiscal policy project for the year 2023. The Minister of Finance, Dumitru Budianschi, announces that a consensus has been reached, and this rate will increase only up to 7 percent. Even so, experts consider it counterproductive to apply taxes on bank interest, in a year of crisis and with inflation of over 30 percent.
In order for budget revenues to grow at a positive rate, it is necessary that all sources of income, including interest, be taxed, argues the Minister of Finance, Dumitru Budianschi. He specified that the measure proposed in the budget-fiscal policy is necessary to ensure a fair and equitable taxation regime. However, following discussions with the actors involved, the interest rate increase will be lower, so that a balance between the advantages and disadvantages of this measure is ensured, declared Dumitru Budianschi on a show on Rlive.
"There must be an honest approach to taxation if we want to have a sustainable state. In the discussion with all the actors, we came to the conclusion that, taking into account several factors, we will not come up with this increase of up to 12 percent, but it will be a 7 percent increase. We have to take into account that we have VMS taxation which is 12 percent today and it was good to have a uniform taxation. I really want each of us to understand that you cannot have a state with good services, if no one will pay taxes", said the Minister of Finance.
Dumitru Budianschi stated that uniform taxation would have been welcome, given that revenues are increasing.
The introduction of the bank interest tax is necessary, but it is done too suddenly, and this fact could generate negative effects, economic expert Veaceslav Ioniță told Radio Moldova.
"Income tax is a tax, it is logical. He exists in the whole world. The mistake the Government is making is treating deposit interest as secure income. Currently, the National Bank encourages citizens to deposit money in the bank, and the Government, by taxing interest, which this year is negative, discourages it. My suggestion is that this interest does not touch us this year, because they will not earn much money and it is not fair to tax the losses", said Veaceslav Ioniță.
Radio Moldova recalls that currently, bank interest income is taxed at three percent.
The budget-fiscal policy project for the year 2023 was approved during the Government meeting and is to be examined, on Monday, in the Parliament.
