Sugar producers urge Parliament to drop VAT rise from 8% to 20%

Moldova’s Sugar Producers’ Union (UPZM) is asking Parliament to reconsider a provision in the tax bill that Parliament passed in its first reading on 10 September. The bill would raise VAT on sugar from 8% to 20%. UPZM estimates that sugar could become about 11% more expensive and says the industry would be at risk.

UPZM argues the tax comes on top of high energy costs, difficult farming years and imports from Serbia and Belarus. UPZM points to more than EUR 130 million of European investment in the sector and compares the proposed rate with reduced sugar VAT rates it cites for Germany (7%), Italy (10%) and Romania (11%). The union also warns of smuggling risks, as sugar is not subject to VAT in the Transnistrian region. Under the bill, the 8% rate would remain for bread, milk and some fruit and vegetables. The increase has not yet been finally adopted; Parliament still has to decide.

What it means for you

• Confectioners, bakeries, beverage makers and HoReCa: estimate how a sugar price rise would affect your costs.
• Retailers and distributors: watch the parliamentary vote before setting winter prices and stock levels.
• If sugar is a major cost item, negotiate supplier terms early.

Source: Ziarul de Gardă, 30.09.2026