Moldova advances fiscal integration plan for Transnistria region
The Moldovan Parliament has passed a landmark bill in its first reading to phase out fiscal disparities between the two banks of the Dniester. The legislation, approved on March 26, 2026, establishes a Convergence Fund to integrate Transnistrian businesses into the national tax framework.
Supported by 57 MPs from the PAS and "Democrația Acasă" factions, the initiative mandates that companies in the Transnistrian region begin paying VAT and excise duties. These revenues will be redirected to social and infrastructure projects within the region through the newly formed fund.
Tiraspol warns of economic disruption
The unrecognized authorities in Tiraspol have criticized the move, claiming that imposing Moldovan taxes will stifle local production and trade. In a statement, the regional "foreign ministry" argued that the measures threaten energy supplies and could permanently block the political settlement process.
Gradual implementation and incentives
Moldovan officials clarified that the transition will be gradual, concluding in 2030. The first set of taxes is scheduled for introduction in the summer of 2026, initially targeting non-essential goods.
Companies that opt for permanent registration with Moldova’s Public Services Agency (ASP) will benefit from tax deduction mechanisms identical to those on the right bank. Currently, approximately 460 Transnistrian firms hold permanent registration, while over 2,000 remain on provisional status.
Impact of non-compliance
The government emphasized that entities refusing permanent registration will face significantly higher operational costs. These expenses are expected to be reflected in the final retail prices of their products.
The draft law is currently undergoing public consultation and awaits a final vote in the second reading to become enforceable.
Translation by Iurie Tataru
