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March 28, 2023

Tax Council: Tax evasion at 13.8 pc of GDP last year

Tax evasion has a very high level in Romania, accounting for 13.8 per cent of gross domestic product (GDP) last year and should Romania collect the taxes it has at utmost, it would have above-European average budget revenues as GDP percentage, show calculations made by the Tax Council based on the figures supplied by the National Institute of Statistics, Agerpres reports.
Around 60 per cent of the tax evasion is generated by the value-added tax (VAT), while social contributions account for 24 per cent of overall tax evasion, chiefly by means of the illegal labour. ‘Romania has one of the lowest shares of the budget revenues (tax and non-tax revenues) in the GDP, as they accounted for only 33.5 per cent of GDP in 2012, by 11.9 per cent less than the European average. In fact, the tax revenues accounted for 28.1 per cent of the Romanian GDP in 2012, being significantly smaller than in countries such as Hungary (38.1 pc), Slovenia (37.8 pc), the Czech Republic (34.8 pc) and Poland (32.4 pc)’, the report says.

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