Economic Instruments for Managing Environmentally Harmful Products in Moldova - Current Practices and Policy Recommendations

This document outlines an OECD-led EaP GREEN project supporting Moldova in reforming economic instruments for environmentally harmful products, focusing on product taxes and extended producer responsibility (EPR) within EU alignment efforts. It reviews current practice—ad valorem taxes across 20 categories, high administrative burden on packaging, modest revenues, and limited behavioral impact—and diagnoses weaknesses such as poor differentiation and data inconsistencies. It recommends an interministerial reform commission, narrowing and restructuring the tax base, raising and differentiating rates to 5–10 percent, and phasing out taxes where EPR schemes will govern packaging, vehicles, tyres, batteries, and lighting.