Bucharest mayor Nicușor Dan to propose fiscal code amendments following referendum

Bucharest mayor Nicușor Dan announced that he would submit a series of proposals to the government and political party leaders aimed at amending legislation concerning the allocation of funds between the General City Hall and the district mayors of the capital.

The proposals were drafted by the experts of the Bucharest City Hall following the results of the referendum held on November 24, 2024, where the majority of Bucharest residents agreed that the distribution of income taxes and local taxes between the General City Hall and the district mayors should be approved by the General Council of Bucharest.

"Following the November 24 vote, I believe it is essential for Parliament to amend these two laws - the Law on Local Public Finances and the Fiscal Code - so that the will of the people is respected," Nicușor Dan said during a press conference on January 28, as reported by news agency Agerpres.

He explained that, regarding local taxes, the Fiscal Code should be amended to ensure that taxes that currently go to the six districts' budgets are redirected to the Municipality of Bucharest's budget. He further suggested that the Law on Local Public Finances should state that these funds belong to the Municipality, with the General Council then distributing them between the City Hall and the district mayors based on specific criteria.

The mayor further stated that these funds would be directed towards major investments, the expansion of public transportation, and the transfer of district heating plants (CETs) from the Ministry of Energy to the Bucharest City Hall.

"My team has already prepared the legal framework for the necessary amendments. This framework will be sent to the government of Romania and the prime minister, as well as to the leaders of the coalition. We want the government and Parliament to review our proposals during the discussions on the national budget law for 2025. We hope that by February, when the national budget law is approved, the modifications requested by Bucharest residents in the referendum will also be approved," Nicușor Dan said.

According to the proposals quoted by Agerpres, the provisions in the Fiscal Code related to district mayors will be amended so that they refer to the Municipality of Bucharest. This includes funds from fines, judicial stamp taxes, and income taxes.

"The money will go to the Bucharest City Hall. The General Council will decide how to allocate it between the seven city halls. District councils will then decide how to distribute the funds within their districts. This distribution will be based on criteria such as the number of students in schools or the amount of green space in the sector," the mayor explained.