Moldova plans tax code overhaul and defense spending boost
Moldova has announced plans to revamp its Tax Code and increase defense spending to 1% of GDP by 2030, amid new data on state enterprise profits and construction permits.
Moldovan officials have outlined new fiscal and security priorities alongside fresh macroeconomic data. Prime Minister Vasile Tofan announced that the cabinet will draft an updated Tax Code following public consultations and feedback from business leaders and economic experts. Concurrently, the Ministry of Defense proposed raising defense expenditure to 1% of gross domestic product by 2030, up from current levels of roughly 0.75%.
The announcements coincide with mixed financial indicators. State-owned enterprises reported improved performance in 2025, generating a collective 3.35 billion lei in profits across 57 profitable entities, while total losses among 18 struggling firms shrank to 242 million lei. Meanwhile, official statistics for the first half of 2026 revealed a slight 0.5% decline in overall construction permits, as a rise in residential building failed to fully offset falling commercial development.
Sources: Point