Tag: Fiscal Code amendments

  • July 15, 2022

    July 15, 2022

    GOVERNMENT – The Government today adopted
    new amendments to the Fiscal Code. Following a series of talks with social
    partners, employers, trade unions and representatives of local officials, the
    Ministry of Finance has operated a number of changes to the Fiscal Code. The
    Ministry accepted the employers’ proposal that hospitality companies may opt
    between paying regular taxes or the tax on profits starting January 1, 2023.
    Another modification is linked to lowering taxes on betting revenues and the
    elaboration of a separate bill on amending the legislation regarding the
    organization and monetization of games of chance. In the case of property
    taxes, the new bill stipulates that the tax is calculated based on older
    records kept by local authorities whenever notary grids provide for values that
    are lower compared to those used so far.




    COVID – Over 4,100 new cases of
    COVID-19 and 3 related deaths were reported within the space of 24 hours,
    health authorities announced on Friday. Most new cases are reported in
    Bucharest and Ilfov County. Some 1,700 people are treated for COVID in
    hospitals across the country, 101 of whom in intensive care. Since the start of
    the pandemic, over 65 thousand people have died to the virus in Romania.




    LAWS – Two new bills on secondary and
    higher education have been submitted for public debate in Romania. Education
    Minister Sorin Cîmpeanu says the modifications are designed to radically reform
    the system and that they are the results of the project Educated Romania
    launched by president Klaus Iohannis. Over 10,000 education experts have
    contributed to the elaboration of this project.




    VISIT – Germany’s Foreign Minister,
    Annalena Baerbock on Friday said that the Republic of Moldova ‘is not alone’,
    announcing an additional financial assistance package worth 77 million EUR for
    this country. Minister Baerbock is paying a state visit to Romania, attending the
    second ministerial conference of the Moldova Support Platform in Bucharest,
    alongside her Romanian counterpart, Bogdan Aurescu, and France’s Secretary of
    State for Development, La Francophonie and International Partnerships,
    Chrysoula Zacharopoulou. In turn, Minister Aurescu underscored the importance
    of providing Moldova with direct grants, saying that every day the war
    generates shockwaves beyond the borders of Ukraine. In turn, Moldova’s
    president, Maia Sandu, pointed out in her address on the sidelines of the
    conference that it is important to know that we’re not alone, that we can rely
    on you. Moldova is a small country, and the scale of the current developments exceeds
    its capacity to cope with the situation. Also today, Minister Annalena Baerbock will pay a visit to the city of
    Constanța (southeast), where she will meet local officials and
    representatives of German businesses to discuss the Ukrainian grain exports.




    BLUE AIR – The National Consumer
    Protection Authority (ANPC) has handed a 2-million-EUR fine to the Romanian
    low-cost flight operator Blue Air, which cancelled over 11 thousand flights
    over April 30, 2021 – April 30, 2022, also forcing the company to return the
    money to its clients within ten days for every flight cancelled. During this
    period, Blue Air received payments worth 13.4 million EUR from clients from 20
    EU Member States. ANPC has recommended consumers to be extremely vigilant and
    avoid purchasing tickets from airlines that cancelled a large number of flights
    in the past and that failed to observe passenger rights. On the other hand,
    ANPC has issued warnings to other airline companies that cancelled flights or
    reported delays during the aforementioned period, with no regard whatsoever to
    passenger rights. This is the biggest fine ever awarded to an economic
    operator, ANPC officials say.




    WAR IN UKRAINE – A national day of
    mourning is today observed in Vinnytsia, Western Ukraine, after a Russian
    missile attack killed at least 23 people on Thursday. Over 100 people were
    wounded and dozens are missing. Two missiles launched from a submarine in the
    Black Sea hit buildings in central Vinnytsia, the blast damaging scores of
    nearby buildings. The UN Secretary General, Antoniu Guterres, and the EU High
    Representative for Foreign Affairs, Josep Borrell, have expressed their shock
    with Russia’s latest aggression. The attack was carried out just ahead of a new
    conference of the International Criminal Court designed to investigate Russia’s
    war crimes in Ukraine. The city of Mykolaiv in the south was also hit by
    missiles. Several buildings were shelled, including two schools and a hotel.
    Hostilities continue in the northeast as well. In the Kharkiv Oblast, Ukrainian
    forces are facing attacks from multiple directions, but have so far been
    successful in preventing the Russians from advancing. In Donbas too, attacks
    have been reported in the towns of Kramatorsk and Sloviansk, where Russian
    forces are hitting rail infrastructure to cut off weapon supplies. (VP)



  • Amending the Fiscal Code under debate

    Amending the Fiscal Code under debate

    The motion filed against Finance Minister, Ionut Misa on Monday was rejected by the Senate. Initiated by the National Liberal Party and backed by the People’s Movement Party and the Save Romania Union, all in opposition, the motion accused the fact that the implementation of the government programme with which the Social-Democratic Party had won the elections has already given rise to economic imbalance difficult to overcome and the consumption-based economic growth proves its shortcomings. Furthermore, the signatories to the motion denounced the fiscal chaos triggered by the Tudose Cabinet: the increase of structural spending on wages, the lowering of public investment and tax returns. Liberal senator Romulus Bulacu:



    Through our vote, we, MPs of the National Liberal Party, the People’s Movement Party and the Save Romania Party, call upon the Tudose Government to take measures to restore the budget deficit to its set parameters as soon as possible, to ensure the fiscal stability and predictability required by the business sector, to take steps in order to protect Romanian businesses and capital, cut labour force taxes, boost direct investment, reduce spending on wages and social welfare; we also demand the resignation of the finance minister.”



    Sharply criticizing the fiscal amendments envisaged by the Social-Democrats, president Klaus Iohannis reiterated that the implementation of the new measures must be postponed and they should be drawn up after a thorough analysis. Largely criticized by company managers, unionists and part of civil society, the amendments are fiercely defended by the Government. The latter says that the package of fiscal measures can create the premises for a sustainable economic growth pace, Romania currently being one of the EU’s most dynamic economies.



    The Draft Ordinance amending the Fiscal Code says that starting January 1st 2018, social security contributions will be paid by employees and no longer by employers, the income tax will go down from 16 to 10% and employers will pay a solidarity tax. The government session focusing on the adoption of the Ordinance has been put off twice so far. When it comes to a package of such important measures, urgency is not a key factor for the rulers. In exchange, those who oppose the amendments to the Fiscal Code say that the rulers want to procrastinate adopting the measures either because they are insufficiently substantiated or they step back fearing criticism. Criticism has also come from the mayor of Bucharest, Gabriela Firea, a member of the Social-Democratic Party, who is afraid that the fiscal amendments might trigger the decrease of funds for investment in local communities. (Translated by A.M. Palcu)