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The big challenge next year will be the more efficient collection of existing charges and taxes under a budget deficit target of 3.6pct of GDP, above the maximum limit for the EU member states, according to an analysis by PwC.
According to the quoted source, the year 2020 will start, in the fiscal field, with the entry into force of some reparative measures, mainly targeting Emergency Ordinance 114/2018, but also with the expectation of the business environment for a series of novelties and clarifications to be adopted in January.
"The cancellation, respectively the adjustment, to the provisions of Emergency Ordinance 114/2018 one year since its entry into force, as well as the official declarations that no changes will be made without consultation is a first step to regaining the confidence of the investment environment that requires predictability and fiscal stability. At the same time, the tense budgetary situation is a cause for concern, given the additional pressures to increase spending and lower taxes - the most recent example being the 16pct decrease in the standard VAT rate, which has been postponed so far. In this context, the improvement of the collection becomes an urgency. The examples of good practices of other states and the experience of Romania in recent years - when various measures have been tried without result - show that the most secure option to obtain higher revenues is reform and digitalization", says Daniel Anghel, partner and leader of tax and legal services, PwC Romania.
According to the latest official data valid for the year 2018, the tax revenues (from taxes to which the social insurance contributions are added) were 26.7pct of the GDP in Romania, half of them coming from VAT and social contributions. The EU average in terms of tax revenues was 40pct of GDP.
AGERPRES
