RRI Live!

Listen to Radio Romania International Live

New tax legislation

The government in Bucharest is determined to implement this year a new Fiscal and Fiscal Procedure Code.

, 12.03.2015, 14:47

The government in Bucharest plans to start the implementation this year of the new Fiscal Code and Fiscal Procedure Code resulting in lower taxes and duties. Prime minister Victor Ponta promised to submit the bill to Parliament by the end of the month to be passed before the next parliamentary recess.


Victor Ponta: “It is a radical reform for Romania. We can do it now because the economic results allow us to and we should not miss the opportunity. I would very much like for the two new codes to be debated by Parliament. I am only considering the possibility of the government’s calling for a vote of confidence on the bill in the event of a political deadlock. I hope this will not be the case. I have noticed that the opposition has changed its initial position, which was only motivated by political reasons, and will support the Fiscal Code, which is a good thing, because this is not my party’s Code, but Romania’s, and will help create jobs and stimulate economic growth.”



According to Prime Minister Ponta, the business community is looking forward to the implementation of the new fiscal legislation, which may create over 300,000 jobs. The Fiscal Code bill provides, among others, for a VAT reduction from 24 to 20% next year and by another 2% in 2018. The VAT on basic foodstuffs such as meat, fish, fruit and vegetables would also be reduced from 24 to 9% as of next year.



Starting in 2017, the amount of social security contributions will decrease from 10.5 to 7.5% for employees and by 15.8 to 13.5% for employers. The government also proposes a cut in the flat tax from 16% to 14% starting in 2019. Other measures proposed include a reduction in the excise duty on fuel and an increase in the house and land tax.



Supporters of fiscal relaxation, the Liberals in opposition said they would never vote in favour of the Code. They say the possibility for the government to call for a vote of confidence to force the bill through would be a mistake. The Liberals argue that a bill like the Fiscal Code should stay in public debate long enough for the population to understand its advantages. They also accuse the Social Democrats of populism, saying cutting taxes is unrealistic.



The NGOs, on the other hand, say the amendments to the Fiscal Code would affect the incomes of thousands of such organisations, as well as hospitals, universities, schools and museums and would “penalise” the large companies that make a profit and are involved in sponsorship activities. Economists are divided over the new fiscal legislation, with the most cautious of them doubting that a relaxation of monetary and fiscal policies could lead to economic growth.

Mircea Fechet (Photo: gov.ro)
Today in the News Friday, 25 April 2025

The Environment Fund Administration gets record budget

The Environment Fund Administration this year received from the government a record budget for investments, worth over 3.2 billion euros. The money...

The Environment Fund Administration gets record budget
Minister of Education and research, Daniel David
Today in the News Friday, 25 April 2025

Measures for the Romanian education

During Thursday’s meeting, the Romanian government discussed several laws related to education. They established the legal framework for...

Measures for the Romanian education
Photo: pixabay.com
Today in the News Thursday, 24 April 2025

A new law on the magistrates’ pensions

There are several occupational categories in Romania whose employees are usually retiring under the age of 50 and whose pensions aren’t exclusively...

A new law on the magistrates’ pensions
Foto: Mediamodifier / pixabay.com
Today in the News Thursday, 24 April 2025

Downward forecast revision from the World Bank

According to its latest report, the World Bank expects growth in developing economies in Europe and Central Asia to slow down to 2.5% in 2025-2026...

Downward forecast revision from the World Bank
Today in the News Wednesday, 23 April 2025

From budget deficit to governmental debt

  The Romanian finance ministry reiterates Romania’s commitment to meet the 7% of GDP deficit target at the end of the year, and promises...

From budget deficit to governmental debt
Today in the News Wednesday, 23 April 2025

Romanian – German Friendship Day

A year ago, former Romanian President Klaus Iohannis, himself an ethnic German from Transylvania, promulgated the Law establishing April 21 as...

Romanian – German Friendship Day
Today in the News Tuesday, 22 April 2025

Romania reacts to the Pope’s Death

Pope Francis passed away on Monday, the second day of Easter, after 12 years of pontificate, and the emotion caused by his disappearance crossed the...

Romania reacts to the Pope’s Death
Today in the News Thursday, 17 April 2025

Christians before Easter

The Orthodox Christians in Romania are preparing to celebrate Easter – the feast of light and joy, considered the greatest celebration of...

Christians before Easter

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