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Energy Subsidy Reform in the Republic of Moldova

Energy Affordability, Fiscal and Environmental Impacts

image of Energy Subsidy Reform in the Republic of Moldova

This report looks at the fiscal, environmental and social impacts of energy subsidy reform in Moldova with a particular focus on energy affordability. Reduced value added tax (VAT) rate on natural gas consumption and a VAT exemption on electricity and heat consumption by domestic users represent the largest fossil-fuel consumer subsidies in Moldova. Reforming these will imply an increase of the VAT rate, which will lead to an increase of gas, electricity and heat tariffs for households, and will in turn affect household consumption levels, related expenditures and energy affordability. If reform measures are to work, they will need to be accompanied by a carefully-designed social policy to protect poor households.

English Romanian

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Moldova's energy subsidy reform: key analytical premises

This chapter introduces and briefly discusses the major energy subsidy schemes in Moldova, the country’s energy intensity and greenhouse gas (GHG) emissions and issues related to Moldova’s public debt. These issues are of special importance, as they form part of the background information and data needed to assess the impact of energy subsidy reform.

English Romanian

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