RRI Live!

Listen to Radio Romania International Live

Final draft for the fiscal code

The new draft fiscal codes have stirred a huge public interest, but also fierce contradictory debates.

, 31.03.2015, 13:45

The new draft Fiscal and Fiscal Procedure Codes, adopted by the Romanian Government last week, are now being debated by the Senate’s Budget Committee, under an emergency procedure. On Monday, however, the Fiscal Council, an independent body whose responsibility is to make recommendations regarding the long term fiscal and budgetary discipline, rejected many of the amendments brought to the two codes. The Council believes that the government’s initiative to rewrite the codes was both justified and welcome, but the due and tax reductions provided by the new bills are unsustainable.



According to the council, because of the new fiscal cuts, the budget targets will be exceeded, so in 2019 the deficit would be as big as in 2010, when the economic crisis was in full swing. Also, the Fiscal Council said that the government had overestimated the positive effects that such a fiscal relaxation would have on economic growth. The moment chosen for such measures is not right either, because, the council says, putting too much pressure on economic growth, as it happens in Romania today, might trigger a new phase of recession, therefore fresh austerity measures.



The Fiscal Council’s recommendations, which do not favour the amendments to the fiscal codes, have been harshly criticized by Prime Minister Victor Ponta, who has been keen on stressing that the responsibility for the new legislation in the field lies with his cabinet. The Prime Minister has questioned the accuracy of the council’s conclusions, saying that the political motivation of its members, appointed in 2010, replaced professional objectivity. Prime Minister Victor Ponta:



As far as I know, the council’s recommendations were not favorable also when we cut the VAT on bread and when we decided to reduce employers’ contributions to the Social Security Fund.”



The Romanian Government estimates that with the new provisions regarding the drop in the contributions to the social security fund, the cut of the flat tax rate, of the VAT and of excise duties, the new Fiscal Code will trigger economic growth. In turn, the liberal opposition has announced it will file amendments during the parliamentary debates. As to the areas targeted by such amendments, the former finance minister Gheorghe Ialomiteanu gave some details:



We do not agree to the increase in local taxes and dues, and some fiscal relaxation measures should be implemented right now, because the business environment needs to benefit from lower taxes and dues now. Also, the provisions regarding lower employment taxes should be enforced as soon as possible because the major problem that Romanians are faced with is to find a job, now, not in 2017 or 2020.”



The two fiscal bills were also under public debate for a month.

Signing of the protocol (foto:
Today in the News Friday, 22 November 2024

Transition program towards F-35, launched

The Romanian Air Force’s transition program to 5th generation aircraft has been launched.   Romania’s decision to acquire advanced fighter...

Transition program towards F-35, launched
Energy (foto: EdWhiteImages / pixabay.com)
Today in the News Friday, 22 November 2024

The National Energy Strategy, adopted

Using local resources, reducing imports and making massive investments in production capacity are important elements of the new National Energy...

The National Energy Strategy, adopted
European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company