Prisons in Romania to be exempt from tax on profit from convict labor

Prisons in Romania will be exempt from the profit tax and the VAT on their income from work they carry out with detainees, according to a draft project cited by local Profit.ro. Authorities said that prisons are not aimed at making profits. Any profits earned by jailhouses from prison labor should not be covered by the Fiscal Code, as all revenues are used to finance their core activities, according to the Justice Ministry. Prisons can earn their own income from renting agricultural land, capitalizing on goods or renting. Using detainees for several activities doesn’t have an economic outcome, according to the bill. The main aim is to educate convicts through labor and reintegrate them into society. editor@romania-insider.com