Finance minister: IFIs recommend Romania switch to progressive taxation within 3-5 years

Romanian Social Democrat (PSD) finance minister Adrian Câciu claimed that all international financial institutions recommend Romania to switch to progressive taxation within 3-5 years, and announced that a debate on this will be organised – but not now, Economedia.ro reported.

In the meantime, more of the World Bank’s report on the recommended fiscal reforms carried out under the PNRR surfaced in the media.

The WB suggests Romania abandon the single-rate tax system and replace the tax breaks extended to sectors (IT, construction, and agriculture) with social benefits extended in a more targeted way to those needing them (low-income families, households with children), according to Cursdeguvernare.ro.

Similarly, the tax allowances extended to companies reinvesting their profit should be revaluated and replaced with an investment credit system.

(Photo source: Inquam Photos/Octav Ganea)