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PSD's Ciolacu: I want a functional gov't that collects what is due to the Romanian state

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Marcel Ciolacu

Chairman of the Social Democratic Party (PSD) Marcel Ciolacu said on Wednesday that tax evasion in Romania is estimated at 10 percent of GDP and that 34 percent of VAT goes uncollected, adding that he wants a functional government that "collects what is due to the Romanian state."

Asked at the Palace of Parliament if the Finance Minister will table to the ruling coalition a budget blueprint that provides for scrapping certain deductions for companies in order to funnel more money into the state coffers, Ciolacu replied: "I think that first of all, he will come with measures to improve collections by institutional reorganization - according to current estimates, tax evasion in Romania accounts for 10 percent of GDP, to be more precise this 10 percent is on the turf of the Health, Education and Agriculture ministries. (...) 34 percent of VAT goes uncollected in Romania, this means (...) 6 billion euros in cash. Instead of thinking how to attract EU funds, we talk too much about NRRP, this is money that will only come in a year or two, and instead of reorganizing the customs, of introducing the merchandise radar in areas with serious tax evasion, instead of turning all invoicing electronic, we scramble to cut wages and pensions. This is not fair. I want a functional government, a government that collects what is due to the Romanian state."

The PSD leader added that at the meeting of the governing coalition this Monday the Finance Minister will also present the measures to address the issue of tax evasion and uncollected VAT.

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