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FinMin Caciu: Romania was unaware of NRRP-provided fiscal reform implying revision of certain taxes

Guvernul Romaniei
Adrian Caciu

The National Recovery and Resilience Plan (NRRP) provides for a fiscal reform under which certain taxes will be revised, Finance Minister Adrian Caciu declared on Thursday evening on private TV broadcaster Antena3; the FinMin gave assurances that there will be absolutely no tax change in 2022.

"There's a reality people didn't know about and today we made public some elements. (...) The country was unaware that the NRRP also includes a fiscal reform that provides for the revision of the fiscal regime, for certain taxes - including property and income taxes or contributions - to be reconsidered. The NRRP also requires this revision to be done from the office, with technical assistance provided by international financial institutions, but without debate. What I want to emphasize is that we are doing it, because we have to carry out the reforms laid out in the NRRP, but we are starting a formalized public debate in which the main actors will be those in the business environment who will come up with proposals, obviously for the accomplishment of the NRRP targets," said the Finance Minister.

According to the NRRP paragraphs referenced by the Minister, "the comprehensive revision of the tax system aims to identify distortions and areas where the relevant tax law may develop, in particular for profit and income tax, and social security contributions (CAS, CASS and the security contribution for labor), as well as for the taxation of property, so as to substantiate decisions for a gradual withdrawal of excessive tax incentives, in particular for profit and income tax, CAS, CASS and CAM, without affecting the economic growth and development impacted by fiscal policy decisions. The Romanian tax law will undergo a detailed analysis with technical assistance, especially as regards taxes and social contributions due on the income of individuals, the profit tax (including the special regimes they benefit from as an exception), the property tax (local taxes) and green tax."

Caciu explained that the solutions must come from the business community and the society, stressing that no tax change will be implemented in 2022 and that from his point of view, a thorough analysis of the tax regime is necessary in connection with informal economy.

Asked if there's a chance for the profit or property tax not to be increased, given the tax revision commitment set forth in the NRRP, the Minister replied that this requires a partnership with the business environment and the society, because this is the only way the EC can be persuaded that certain elements can be optimized.

The Finance Minister emphasized that from his point of view, the adjustments could refer to unfair tax competition, "that is, the black economy", Agerpres informs.

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