Tag: taxpayers

  • New budgetary and fiscal measures

    New budgetary and fiscal measures

    The Romanian Government approved, by emergency ordinance, a series of measures aimed, mainly, at improving budget revenue collection and at recovering a significant part of the debts of natural persons and legal entities to the state budget. Prime Minister Marcel Ciolacu rejected the accusations leveled by the opposition politicians that this move was, in fact, “an ordinance of austerity”, and showed that the document introduces, for the first time, bonuses for taxpayers who paid their taxes in due time. In turn, the Finance Minister, Marcel Boloş, declared that the debts of companies and individuals to the state budget exceeded, at the end of last month, 70 billion lei (about 14 billion Euros). He showed that there are 330,000 legal entities and more than 840,000 natural persons who are in this situation, and, according to the ordinance, they could benefit from exemptions and even cancellations if they comply with payment obligations by November 25.

     

    Marcel Boloş: “For legal entity taxpayers, the cancellation of accessories has been approved as a percentage of 100% of their value, accessories meaning interest, late payment penalties and non-declaration penalties, and for natural person taxpayers we have, depending on the value of the debts, fiscal facilities; so, if these debts are up to 5,000 lei, the cancellation of the accessories is 100%. Also, we have the cancellation of 50% of the main budgetary obligations, and if the debt is over 5,000 lei, then the cancellation of the main obligations is 25%.”

     

    Another provision of the document approved by the Romanian executive aims at a better use of the funds allocated for expenses in ​​public services. The finance minister explained that the investments carried out by town halls and county councils are exempt from this provision and that, moreover, the treasury loan ceiling for these projects has been increased.

     

    Marcel Boloş is back with explanations: “To support the local public authorities and the investment projects they implement, the ceiling for contracting loans from the State Treasury for the implementation of investment projects was increased to the amount of 2 billion lei. Also the government approved the increase in the withdrawal ceiling by the amount of 700 million lei and, at the same time, a category of special loans was increased by the amount of 1.5 billion lei.”

     

    The tax authority estimates that the measures approved by the government on Wednesday will reduce Romania’s budget deficit by approximately 9 billion lei (about 1.8 billion Euros) and this in the context in which the country has one of the largest budget deficits in the European Union. Economists anticipate that it will exceed 7% of the Gross Domestic Product at the end of the year. (LS)

  • The Week in Review, October 11 – 17

    The Week in Review, October 11 – 17


    Romania attended the Autumn
    European Council in Brussels




    Romania’s President, Klaus
    Iohannis, on Thursday attended the autumn European Council, alongside the EU
    leaders. The focal points on the agenda of the summit were the refugee crisis
    and securing the EU’s external borders. The summit, which initially should have
    lasted two days, ended on Thursday night with an announcement of an agreement
    being reached in principle between the EU and Turkey, on capping the inflow of
    refugees heading for Europe. In exchange for securing Ankara’s better
    cooperation to contain the wave of migrants, the European leaders promised
    Turkey visa waiver for its citizens, financial assistance and opening new
    chapters in the negotiations for EU accession, a process that is now being
    blocked. Turkey, the main gateway into Europe for the flow of migrants coming
    from neighbouring Syria, is currently providing shelter to some two million
    Syrian refugees. In another move, the European leaders decided to tighten
    control on the external borders of the EU and to find solutions to the
    humanitarian crisis generated by the conflict in Syria. Refugee-related issues
    and EU reforms had been approached, ahead of the summit, by Romania’s
    President, Klaus Iohannis, and the President of the European Parliament, Martin
    Schulz. Iohannis said migration-related issues should be approached in their
    entirety, in the areas where they emerge, and the EU should cooperate with all
    the refugees’ countries of origin and grant support to transit countries, such
    as Turkey, as well as to the countries that are now providing shelter to
    refugees.




    The new US ambassador to
    Bucharest has referred to the cracking down on corruption and the improvement
    of the economic environment in Romania




    Romania has made significant progress in fighting
    corruption and improving the economic environment, the new US ambassador to
    Bucharest, Hans Klemm, told an economic forum held in Romania’s capital city.
    He added that Romania must
    capitalize on its strengths and strategic advantages and serve as a springboard
    for investors in the region. On the
    other hand, the US ambassador said Romania must break the cycle of
    political influence in economic decision-making. He called on Romanian politicians to stop meddling in the
    management of state owned enterprises for political gain. Hans Klemm has also
    said politicians should protect and publicly defend those prosecutors that
    pursue corrupt actors, and vocally support an independent judiciary.




    Romania
    gives loan to neighbouring Republic of Moldova




    Romanian
    Deputies ratified a Reimbursable Financial Assistance Agreement, under which
    the neighbouring Republic of Moldova is given 150 million euros. The loan has a five-year
    maturity and carries the same interest rates at which Romania borrows from
    international markets. The first installment, amounting to 60 million euros,
    will be transferred next month. While in Bucharest to attend the ratification,
    the Moldovan PM Valeriu Streletz thanked Romania for the constant support
    provided to Chisinau in various fields. He emphasised that this new loan will be used
    to promote reforms and modernise the country. The PM of Romania, Victor Ponta, explained
    that the difficulties that the Republic of Moldova is facing at present are the
    consequence of Russia’s response to Moldova’s European accession aspirations.


    Victor Ponta: The Republic of Moldova needs
    financial support today, and it can only receive it from us. It needs it in
    order to get through a difficult period, which, I’d say, they have been facing
    especially because of the economic sanctions imposed by the Russian Federation
    in response to one thing: the fact that last year the Republic of Moldova
    signed the EU Association Agreement.


    Valeriu Streletz was also
    received by the head of state, Klaus Iohannis, who reiterated that the Republic
    of Moldova can rely on Romania, at any time and to a substantial extent.




    Romanian Government gives facilities for
    overdue tax payments




    Individuals and
    companies that pay their overdue taxes to the Romanian state by March 31, 2016,
    will have their delayed payment penalties and some of the interest charges
    erased, under an emergency order passed by the Government on Wednesday. PM
    Victor Ponta emphasised that this was not a fiscal amnesty measure, but rather
    a form of supporting the taxpayers which failed to pay the amounts owed to the
    state budget by September 30, 2015. In order to benefit from this facility,
    taxpayers must lodge an application with the local tax administration office.





    Romania’s hosting elements of the
    missile defence system triggers reactions in Moscow




    The Romanian
    diplomats reacted to the accusations of a Russian Foreign Ministry official,
    Mikhail Ulianov, according to whom Romania breaks the Intermediate-Range
    Nuclear Forces Treaty (INF) by hosting elements of the anti-missile shield at
    the military base in Deveselu, in the south. The Romanian Foreign Ministry
    dismissed the accusations as ungrounded and reiterated that this European
    component of the US missile defence system has a strictly defensive purpose and
    does not target the Russian Federation, but rather ballistic missile threats
    from outside the Euro-Atlantic area. Early this week Moscow called on the US
    and Romania to reconsider the inclusion of Mark-41 missile launchers in the
    defence system in Deveselu. According to the Russian Foreign Ministry official,
    this would be a challenge to international security and will be viewed by
    Moscow as a serious violation of the INF Treaty signed by the USA and the
    former USSR in 1987.