The governor of the National Bank of Romania, Mugur Isarescu, maintains that the legislative changes made in the tax field in recent years have been an „abuse of tax policies”, write Agerpres.

„Well, with so many exceptions (…) This was clearly an abuse of fiscal policies. You have in 6 years so many amendments. Well, what stability can you have with such issues? (…). We now have a regressive tax system that puts more pressure on small taxpayers. So, in my opinion, the first measure would be to end, gradually of course, because you can’t even rush business people with measures from one day to the next, from a certain perspective, with all these exceptions and then return to a flat-tax before discussing other tax systems. But going back to a flat-tax, a single tax, not a regressive tax system. This is where we are. And we, the economists, know what a regressive tax system means. It doesn’t help one with pro-cyclicality, it doesn’t help with anything,” Mugur Isarescu said on Friday.

The BNR governor attended the launch event of „The Tax Institute”, the first think tank dedicated to taxation. On this occasion, the first study conducted by The Tax Institute specialists, entitled „Amendments to the New Tax Code: Stocktaking and Impact.”