ECONOMIC COUNCIL TO THE PRIME MINISTER OF THE RM

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund
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Extended producer responsibility

August 12, 2020 – Authorities want to motivate businesses to participate more actively in the waste processing system. In this regard, the Ministry of Finance proposes a mechanism of fiscal facilities.

The topic was discussed on the platform of the Economic Council at the request of the European Business Association, which has been promoting for more than 3 years, the principle of extended producer responsibility.

According to experts, in EU countries there is a tax exemption for the economic agent involved in the waste management process. In Moldova, companies do not benefit from any exemption from the state.

In order to develop and implement a similar mechanism in Moldova, provided for in the Action Plan of the Deep and Comprehensive Free Trade Agreement between Moldova and the EU, EBA Moldova, with the assistance of the GIZ project, developed an Analysis of International Practices and a set of proposals deriving from EU practices. Experts propose a tax exemption or full refund.

The Ministry of Finance has come up with an alternative solution, namely the implementation of a mechanism that would reduce the pollution tax applicable to the economic agent who places the waste on the market (for example, importers and manufacturers of plastic packaging). And subsidizing economic agents that process waste.

In the autumn, the experts will meet to finalize the concept of the mechanism.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund, and the International Finance Corporation’s Investment Climate Reform Project funded by the Government of Sweden’s International Development Agency.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.

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