No new taxes in 2024
The Romanian government says there will be no new taxes in 2024.
Daniela Budu, 17.11.2023, 14:00
Prime minister Marcel Ciolacu said no new taxes would be introduced next year and that the government would secure the needed funding by battling tax evasion. Moreover, this forms an important source for the next budget, says the government. The prime minister calls on those who arent paying their taxes to pay their debts, saying they are „stealing from the peoples healthcare, education and pensions”. He went on to say that the tax collecting agency ANAF has already begun „to do its job”, collecting almost the entire targeted amount. He noted that state institutions are beginning to show determination in this respect and hailed the action taken against tax evasion, which has been stepped up recently. He explained that the money collected is the key to increasing pensions. Marcel Ciolacu:
„In October the collection reached a record level of 40 billion lei [8 billion euros] and Im convinced that by maintaining the same pace by the end of the year and keeping non-essential spending in check we will be able to meet the deficit target agreed with the European Commission. Weve seen sustained action to fight tax evasion in recent days and eliminating tax evaders, who are stealing tens of billions of lei, is the key to obtaining the necessary funds for pensions, for education, for healthcare.”
The leader of the National Liberal Party Nicolae Ciucă said taxes and duties would not go up, as it would be unfair for business to do this in the first or later part of the year. Moreover, he recently argued that one of the sources that can sustain the new pensions law is combating tax evasion, which, he said, accounts for some 9 billion euros. Ensuring the financial resources, which is an issue of national security, can be achieved by stepping up digitalisation, Ciucă also said:
„We must find the funding sources and the main source can be provided by combating VAT evasion. We are not shying away from this responsibility and will do everything possible to continue measures that have already been implemented in this sense.”
According to the European Commissions autumn forecast, Romanias public deficit is estimated at 6.3% of GDP in 2023, significantly higher than the level expected by the government in Bucharest. In 2024, the deficit is forecast to reach 5.3%, a drop also generated by the fiscal consolidation measures planned to be implemented from January. (CM)
