The Cabinet of Ministers approved at today’s meeting the fiscal and customs policy package for 2027, aimed at simplifying and streamlining legislation in the field. The document provides for amendments to the Tax Code, Customs Code, and other related legislation and was developed following consultations with the business community, public authorities, and taxpayers, reports TRIBUNA.

The new measures seek to create a fairer, simpler, and more predictable tax system, encourage investment and profit reinvestment, and gradually align national legislation with European Union standards.

“The way a state sets its priorities in fiscal policy determines how the economy will function. Our vision is the following: we tax labor less, we tax investment less, but we compensate through higher taxation of harmful habits. We need a balanced fiscal policy so that we can pay our bills, implement the salary law, and cover the debts we owe to farmers. I continue to encourage civil society and the business community to get involved. If there are still shortcomings or things that need to be corrected, we have the opportunity to do so between readings in Parliament,” Prime Minister Vasile Tofan said.

Finance Minister Victoria Belous noted that most of the fiscal policy measures are proposed to enter into force in 2027, with the exception of VAT on parcels, for which the proposal is to take effect on October 1 this year.

Regarding personal income tax, an increase in the personal allowance is proposed: the standard personal allowance would rise from 29,700 to 40,020 lei per year, while the higher personal allowance would increase from 34,620 to 40,020 lei. The conditions for confirming a “primary residence” would also be made more flexible, allowing taxpayers to benefit from the tax facility when selling their primary residence even if they were not properly registered at that address, provided they lived in the property and it was their only residence. In addition, an outstanding personal income tax debt of up to 100 lei would no longer prevent taxpayers from exercising their right to allocate 2% of their income tax.

As regards the revision of tax rates applicable to investment income, several changes are proposed. The capital gains tax rate would remain at 12%, but would be applied in full, without the current 50% reduction of the excess amount. The dividend tax rate would increase from 6% to 8% for profits generated starting only in 2027, while cash donations made by businesses to individuals would be taxed at 12%, compared with 6% currently.

The package also provides for the introduction of a 6% “vice tax” on participation in gambling and lotteries, applied to funds deposited to top up gambling accounts and to the price of lottery tickets. The measure is also intended to offset the social costs generated by the gambling industry for public healthcare and social assistance systems.

For corporate income tax and the income tax applicable to individuals conducting business activities, the 0% rate on undistributed profits would be extended until 2029, while the eligibility threshold would increase from 100 million lei to 200 million lei. The tax rate for peasant households would be aligned with that applicable to individual enterprises and salaried individuals in comparable circumstances, rising to 12% from the current 7%.

In addition, the income threshold from business and management consulting above which the special tax regime of 4% of turnover can no longer be applied would be reduced from 60% to 25%. The income tax exemption for savings and credit associations, trade unions and employers’ organizations, and private educational institutions would be eliminated; they would apply the standard 12% rate. A temporary 18% rate would be introduced for 2027 on income from financial and insurance activities.

Regarding VAT, the proposed changes include extending the reduced 8% rate to poultry meat and eggs and maintaining the 8% rate for bread, milk, and fresh vegetables and fruits grown in Moldova—essential products for the population. A reduced 12% rate would be introduced for certain livestock, crop-production, and horticultural products, as well as certain fresh fruits. Starting April 1, 2027, household natural gas consumption of up to 150 cubic meters per month per consumption point would be subject to a reduced 8% rate, while consumption above this threshold would be taxed at the standard rate. The VAT exemption with the right to deduct would also be maintained for electricity consumption for the first 100 kWh per consumption point. These measures are proposed to take effect on April 1, after the end of the heating season.

The VAT rate for the HoReCa sector would increase from 8% to 12%, while still remaining preferential compared with the standard rate. At the same time, goods imported through distance sales, with a value of up to €150 per parcel, would be subject to a special VAT regime and a 12-lei handling fee per parcel. The measure is intended to eliminate the unjustified competitive advantage of cross-border e-commerce over local retailers.

Regarding excise duties, a clear adjustment trajectory is proposed for the next three years. Excise duties on tobacco products would increase by 20% in 2027 and by 15% in each of the following years, 2028 and 2029. An excise duty would be introduced on nicotine-free liquids. Excise duties would also be introduced on certain non-alcoholic beverages containing sugar or sweeteners, energy drinks, and recreational pyrotechnic articles. For the first time, an excise duty would also be introduced on fully electric passenger cars, calculated based on vehicle weight, while the 25% reduced rate and preferential treatment for electric and plug-in hybrid vehicles would be maintained for another year.

Other changes concern tax administration, including the digitalization and streamlining of processes, classification of violations according to severity, and the application of proportionate fines. Arrears of up to 20 lei per economic classification would be automatically cancelled.

The property tax would also be simplified by establishing a threshold of 4 million lei for the estimated value of residential real estate, including holiday homes. The 0.8% rate would apply only to the value exceeding this threshold.

Regarding local taxes, the changes seek to strengthen predictability, decision-making transparency, and proportionality in the setting of rates by local public authorities. For road taxes, the deadline for paying the annual tax would be linked to the date of the vehicle’s periodic technical inspection. In the customs field, measures are provided to protect bona fide operators, including when non-compliance is caused by the functioning of the Customs Service’s information systems.

The direct positive budgetary impact of the measures is estimated at approximately 5.1 billion lei, including 820 million lei from income tax, 1.6 billion lei from VAT, and 2.7 billion lei from excise duties.

At the same time, the package maintains and expands measures supporting the reinvestment of profits and preserves incentives aimed at essential consumption by the population. The 2027 fiscal and customs policy aims to strengthen a fairer, simpler, and more predictable tax and customs system that supports investment, economic development, and competitiveness while ensuring the resources necessary to finance public services.