Romanian ready to remove part of the tax breaks

The tax breaks in Romania cost the budget some RON 74 billion (EUR 15 bln, 5% of GDP) according to estimates of prime minister Marcel Ciolacu, who said that part of them will be phased out, particularly as such a process is a binding action under the national implementation of the Resilience Facility (PNRR).

"We have 'international recommendations'," PM Ciolacu admitted, adding that the final decision was not made yet, News.ro reported.

The prime minister also stressed that he is not talking about the tax breaks given to the employees in the IT&C sector. He also avoided commenting on two other sectors that are major beneficiaries of tax breaks: construction and agriculture.

This, however, severely limits the government's room for manoeuvre hence the financial impact of eliminating loopholes in the system of taxation.

"The PNRR envisages that we start removing [tax] exceptions. Yes, I believe that certain exceptions will have to be removed in future. This does not mean that, from our preliminary analysis, we will touch on the IT exceptions at this point," PM Ciolacu stated.

As for the areas where these exceptions will be removed, the prime minister stressed that no decision had been taken yet.

"I am firmly convinced that after we make the decision, we will come and communicate. We will not take any decision – we have the international recommendations, at this moment, an analysis is being made at the Ministry of Finance, but we will not take any decision until we talk to all the actors involved," PM Ciolacu said.

(Photo source: Inquam Photos/Octav Ganea)