20.7 C
Bucharest
June 26, 2022
BUSINESS

Finance Ministry’s draft act on new taxes, withdrawn at premier’s demand

The Ministry of Finance withdrew Saturday, at the request of Premier Ponta, the draft Fiscal Code and Fiscal Procedure Code, so they can be analyzed by the government before being placed on public debate. “The government’s intention is to initiate an open and transparent public debate on the modifications necessary to the Fiscal Code and Fiscal Procedure Code, but we also want to adopt measures that will contribute to the continuation of economic growth and the limitation of fiscal burden,” MFP informs in a communique.Currently, a priority of the government is to limit the tax evasion, also through modifications to the Fiscal Code and Fiscal Procedure Code, adds the document. “The way these intentions will be brought to life, after discussions with specialists and the civil society, will be decided by the government and will be subject to public consultation before its approval by the Parliament of Romania,” the ministry informs. The proposals retained after discussions with experts and the civil society will be assumed by the Cabinet together with the 2015 budget in a Parliament vote, the ministry mentioned. The Ministry of Finance posted Friday on its site an updated version of the Fiscal Code draft modification, devised by the government, which will come in force starting 2015. Under the document, local taxes will be indexed every three years, same as now, depending on inflation, but not by the government, like now, but directly by mayor’s offices, which may increase it each year by up to 50 pc from to this level, compared to the maximum level of 20 pc allowed by current norms. The draft also provides that the individuals who own buildings with another destination than dwelling will pay a tax representing up to 2 pc of the taxable value, while the tax on cars will significantly go up two and a half times, for cars with engines up to 1,600 cu.cm.

The proposals that will be assumed by the government will be debated and assumed, together with the budget for next year, by the Parliament, the ministry adds.The document provides that the individuals who currently pay up to 0.1 pc of the taxable value of the building will pay for non-residential buildings a tax between 0.25 and 1.5 pc of the value calculated by a licensed evaluator, or 2 pc of the taxable value, if no evaluation report exists. Thus, individuals will be taxed like the companies which own such buildings.Changes will also be operated to the intown land, where the sum to be paid advances in proportion with the rank and zone of the locality, with increases from 10,353 RON/hectare to 83,000 RON/hectare.The tax paid by car owners will increase from RON 8 lei to RON 20 for each 200 cu.cm in the case of vehicles with engines up to 1,600 cu.cm and from RON 18 to RON 30 for 200 cu cm for cylinder capacities between 1,601 and 2,000 cu.cm, while for vehicles between 2,001 and 2,600 cu.cm the tax will diminish from 72 to 60 RON/200 cubic cm, the decrease also continuing for cars with more powerful engines.Tax modifications will also be operated for freight vehicles, motorcycles, motor boats, jet skis.According to the same document, local taxes will be indexed every three years, same as now, depending on inflation, but not by the government, like now, but directly by mayor’s offices, which may increase it each year by up to 50 pc from to this level, compared to the maximum level of 20 pc allowed by current norms. The draft also provides that the individuals who own buildings with another destination than dwelling will pay a tax representing up to 2 pc of the taxable value, while the tax on cars will significantly go up two and a half times, for cars with engines up to 1,600 cu cm.Under acting laws, local taxes and dues are indexed every 3 years by government decision, and local administrations may raise them by an additional quota which may not exceed 20 pc of the level set by the government.Under the new draft Fiscal Code, indexing in line with inflation will be operated by local councils, not by the government, and local taxes and dues may be increased annually by “maximum 50 pc” from the established level, depending on the conditions specific to the region.At the end of last year, the government pledged to the International Monetary Fund, through the letter of intent, that the level of property taxes paid by individual persons will be set by local authorities, in order to reduce the risk of accumulating arrears and registering a deficit at territorial level. The modifications result from the draft modification of the Fiscal Code, conceived by the government. President Traian Basescu said Wednesday evening that he received for approval the law on diminishing the contributions to the social insurances system and he believes that the government wants to cover the deficit resulting from the lower social security contributions (CAS) by raising the property tax 2-3 times.

Related posts

NEWS IN BRIEF

Test

Tires, divided into energy classes

Nine O' Clock

Romania is 63rd among most attractive countries for top professionals

Nine O' Clock