The Government will erase the penalties for the companies and individuals with budgetary debt outstanding on September 30, 2015, if they pay their overdue taxes by March 31, 2016, according to an Emergency Ordinance.

The Government will also cut more than half (54.2%) of the interests on the outstanding debt if companies and individuals will pay the remaining 45.8% of the interest by June 30, next year. The measure will also apply to companies in insolvency.

Prime Minister Victor Ponta said that this represents a facility, not a fiscal amnesty. He also said this week that the Government should also find a compensation mechanism for those who pay their taxes on time.

editor@romania-insider.com