A brief comparison of the tax system in Republic of Moldova compared to some countries in the EU. Under the fiscal policy of a country or a state budget is directing the whole economic and social life of a country . Government 's fiscal policy consists of the power to tax and to spend. Taxes mean resources that are at the disposal of the state for revenues' accumulating and thus to the cover expenses related to public needs. Taxes modification can be used to stimulate either to cut economic activity. Lowering taxes especially direct income, increases remaining revenues to the public, that will increase production volume, in the acquisition of goods. At the time when state considers that some activities have developed too much, intervenes by taxes' raising, reducing the consumption of such types of goods.