Moldova’s government is currently considering one of its most significant tax reforms in years. Because so many of you pray for, sponsor, and serve alongside the people of Moldova, we wanted to share what these proposed changes could mean for the families and communities we love.
One of the proposal’s most widely discussed changes would increase the Value Added Tax (VAT), a tax added to the purchase price of goods and services, to 20% on certain goods that currently receive lower or exempt tax rates. If approved, the change could increase the cost of many everyday purchases for families already struggling with rising prices.
The proposal comes after several years of economic hardship. Since early 2022, Moldova has experienced nearly 80% cumulative inflation, dramatically increasing the cost of food, utilities, transportation, and other necessities. As families have worked to stretch every paycheck further, many have faced difficult decisions about how to provide for their households.
For the vulnerable children and families served through Justice & Mercy International, these challenges affect daily life.
Many of the children in our Vulnerable Child Sponsorship program are raised by grandparents living on fixed incomes. Others come from households where employment opportunities are limited or where parents are disabled or have left the country in search of work. Rising costs place additional strain on these families already facing difficult circumstances.
The same economic pressures also affect the ministry itself.
Much of JMI’s work takes place in villages and communities outside Moldova’s major cities. Visiting sponsored children, supporting local churches, conducting home visits, and caring for families requires our staff to travel throughout the country. As fuel costs continue to rise, so does the cost of reaching the people we serve. Beyond fuel costs, rising prices affect every area of ministry, from operating our Transitional Living homes and purchasing school supplies to providing meals at camps, supporting refugee families, and equipping local churches.
“The families we serve are incredibly resilient, but rising costs create difficult decisions that no parent or grandparent wants to make,” said Chris Hardy, JMI’s Chief Program Officer. “Economic uncertainty calls the Church to demonstrate the love of Christ in tangible ways. Our commitment is to continue walking alongside vulnerable children and families, offering practical support while sharing the hope of Christ.”
Economic conditions may change, but our mission does not. Justice & Mercy International remains committed to walking alongside vulnerable children and families and proclaiming the Gospel throughout Moldova.
While the final outcome of the proposed tax reform remains uncertain, the challenges facing vulnerable families are already very real. As the country’s government navigates these decisions, please join us in praying for the people of Moldova.
Please pray for:
- Wisdom for government leaders as they consider these proposed reforms.
- Strength and provision for families facing financial hardship.
- Encouragement for the local churches and JMI staff who faithfully serve vulnerable children and families each day.
- That those facing fear, uncertainty, or despair would encounter the hope of Christ.
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