Prime Minister Ilie Bolojan on Monday told the joint plenary session of the two Chambers of Parliament, during the Government’s assumption of responsibility for the second package of reform draft laws, that Romania’s large budget deficit is also the result of disarray in public finance and unclear or ineffective legislation.
„The large budget deficit we have is also a result of the disarray in public finance and unclear or ineffective legislation. These have left loopholes for the non-payment of taxes and duties. Today, the Government assumes responsibility before Parliament for a fiscal reform draft that corrects many shortcomings. The measures we are considering will bring phantom companies to light. We want an environment where honest entrepreneurs are respected. It is scandalous that dozens of companies have their registered offices in the same flat, being used as a front for financial tricks,” the Prime Minister pointed out.
The fifth joint plenary session of Parliament was dedicated to the Government assuming responsibility for the draft law aimed at establishing measures to restructure and increase the efficiency of public resources, and to amend and supplement certain legislative acts.
The Prime Minister showed that there are over 460,000 inactive companies, and a third of them owe the state over 3.5 billion lei.
According to the Prime Minister, through the reform of ANAF (the National Agency for Fiscal Administration) and tax collection, new fiscal risk criteria will be introduced, along with installment plans backed by real guarantees and clear deadlines, in support of those who pay, not those who „stall for time.”
„Companies that do not have a bank account or fail to submit their financial statements within five months will be declared inactive. Newly established companies will be required to open a payment account within a maximum of 60 days,” Ilie Bolojan said.
He also said that all merchants will be required to accept card payments.
„We have updated the property tax in line with a commitment Romania made in the PNRR [National Resilience and Recovery Plan]. The current form is a transitional mechanism towards taxation based on market value. Property tax will increase, and local authorities will have more money for investments without relying on the central budget. We must be fair to Romanians. There is an important package of projects under ‘Anghel Saligny’, from the PNRR, which has changed the face of many communes and towns across Romania, and we want to continue these investments. Since there are no longer resources from the central budget to maintain the same pace, these additional revenues are necessary in local budgets to ensure continued co-financing. We are introducing new integrity rules for ANAF and Customs inspectors. They will undergo integrity tests and wear body cameras during inspections,” the Prime Minister further said.
For the first time, assets confiscated by ANAF will be sold transparently via an electronic platform. New rules will also be introduced regarding the transfer of company shares, which will block the transfer of companies with debts.
„For expenses through which multinational companies could transfer their profits, management and consultancy fees, we are introducing a cap of 1% of the total, above which these expenses become non-deductible. The aim is to monitor sensitive expenditures and stop the transfer of untaxed profits. The additional revenues collected will be channelled towards better public services or projects of community interest. All these fiscal reform measures will help us bring order to public finance, and create fairer and more equitable rules,” Prime Minister Ilie Bolojan concluded.
AGERPRES
