Pollution Tax Reform – a Necessary Step to Ensure Green Economic Growth
Pollution Tax Reform – a Necessary Step to Ensure Green Economic Growth

Author(s): Alexandru Fală
Subject(s): Economic policy, Health and medicine and law, Fiscal Politics / Budgeting
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: Covid 19;
Summary/Abstract: Moldova's natural resources are in a precarious state. Water is a scarce resource and the country's afforestation rate is extremely low1. This is compounded by inefficient waste management and increased pollution from car emissions. At the same time, the Republic of Moldova fails to explore the potential of fiscal-budgetary instruments in addressing environmental issues. For many years, budget spending on environmental protection has been extremely low. In addition, a number of shortcomings in the regulation of environmental taxes are eroding their ability to stimulate environmentally friendly behaviour of citizens and businesses. The existing system of pollution taxes in the Republic of Moldova is outdated, does not correspond to other countries' practices and is lagging behind other environmental reforms. In this context, this study assesses the national practice in the field of pollution taxes. The study concludes with a set of proposals for making pollution taxes more effective.

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