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Prime Minister Marcel Ciolacu said Tuesday that the Government will massively increase fines, confiscate on a large scale the proceeds of tax evasion and will tax by 70 percent all illicit wealth.
"We all want a strong health system that is accessible to all. We all want an education system that really educates our children. We all want social services where our parents and grandparents are properly cared for. But all this costs money. And they can't be built when Romania has a tax evasion of 10 percent of GDP. 160 billion RON. 32 billion euros. That's why we will massively increase fines and confiscate the proceeds of tax evasion. We'll tax everything that means illicit wealth at 70 percent. But the 70 percent tax on unjustified amounts is not the same as taxing wedding or christening money. No! The 70 percent tax will be levied on those who have not paid their taxes correctly, on those who have evaded taxes, on those who have stolen money away from health, pensions and education," Ciolacu said in the joint plenary session of Parliament, agerpres reports.
"Romania can no longer afford facilities and privileges of 75 billion RON and tax evasion of 150 billion RON per year. Together, they represent 15 percent of GDP, exactly what we would need to reach the European average in terms of income. Today we have among the lowest taxes and levies in Europe, but we collect the least VAT. Practically, we don't collect more than a third! In terms of profit tax we collect only a quarter of what we should, and on income tax - only 80 percent. We don't collect taxes, instead we borrow endlessly, risking the blocking of money from the European Union. That's not going to get us anywhere. In recent years huge tax breaks have been given to companies and various categories of employees. Logically, as a result of economic growth, state revenues should have increased. However, revenue has stagnated. Moreover, Romania's budget today is based on taxes paid by employees, on their consumption and on public investments," he said.
