In Brussels on Tuesday, Romania's Prime Minister Mihai Tudose said that in his conversations with European officials in Brussels he very firmly reiterated that the unveiled additional tax on business turnovers will not be introduced.
"I have very firmly reiterated that the unveiled additional tax on business turnovers will not be introduced; that we are predictable as far as our financial and tax systems are concerned, and that all our simulations so far and our expectations point to us keeping within a 3-percent government deficit target," Tudose said at the main offices of Romania's Permanent Representation with the European Union.
He added that he discussed with Romania's Finance Minister Ionut Misa and it is becoming increasingly clearer that the tax as its stands cannot be introduced.
"After yesterday's conversation at my meeting with Finance Minister Ionut Misa it is becoming clearer that the tax as its stands cannot be introduced," said Tudose.
He mentioned having discussed in his conversations in Brussels a Europeans directive calling for a conjugated effort of the Europeans states for transparency and interconnection in relation to information about multinationals.
" With Mr President Juncker I discussed the subject of a 2016 European direction that urges the European states to transparency and interconnectivity in relation to financial information about multinationals or companies that externalise their profits, thus leading to an artificial shrinkage of the tax base. It is a very important directive, and we have to somehow implement it. The principle here is every business operator should be paying taxes where they derive profits (...), because they no longer externalise profits, as they are hiding them pure and simple outside the European Union. (...) We have to find mechanisms here, but we will not implement anything (...) that would solve one case and perhaps spoil the smooth operation of honest operators," said Tudose.
Asked about the solidarity tax, Tudose said: "Simulations of it have not been completed."
Responding to whether or not he will be scrapping the personal asset return that would be needed in case the aggregate income tax is introduced, Tudose said: "There can be no household taxation, on all your assets, without you first declaring exactly what you own in assets. (...) They are closely related."
Tudose also said he doubts the asset return will be implemented in 2018.
"As far as the aggregate personal income tax return is concerned, which includes the asset return as well, it will be the end destination. Applying it when we can is complicated. It has to be well prepared in technical terms and in terms of acceptance, so that people may understand what we are doing and why. I doubt such return will be in use in 2018. (...) This is no scare, but a good thing for the citizens. (...) Implementing it now is hard because we do not have the required infrastructure and people have not figured out yet what this is all about," said Tudose.
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