Romanian Minister of Finances, Mr Adrian Câciu, argued that the National Recovery and Resilience Plan – PNRR contains a fiscal reform to revise some taxes, previously unrevealed publicly. Still, he assures that there will be no additional tax in 2022.
There is a reality that the Romanians did not know about, and today we made some elements public(…) The country did not realize that PNRR also contains a fiscal reform, which aims at analyzing the budgetary regime, to revise some taxes, including the property tax, including taxes on income or contributions. The PNRR also provides this analysis with technical assistance provided by international financial institutions but without debate. I emphasize that we do because we have to carry out the reforms in the PNRR. Still, we are initiating a public and formalized discussion in which the main actors will be those in the business environment, which will come up with a series of proposals to achieve these PNRR targets.
Adrian Câciu, Romanian Minister of Finances
The Minister of Finance mentioned in an interview given to the Romanian Antena 3 TV station, some paragraphs from PNRR indicating that the comprehensive review of the tax system aims to identify distortions and areas in which incidental tax legislation may develop, in particular for income tax, and social security contributions, as well as the taxation of the property to substantiate decisions for a gradual withdrawal of excessive tax incentives, in particular for income tax and social/health contributions, without affecting the growth and development of the economic sector.
In only a few days, the debate has been present on the public agenda. This means that a debate is needed. Nobody, not even us, knew it until the document was published, when it was approved by the European Commission – the solutions must come from the business community, first and foremost, from society, an office (…) and to impose a tax I don’t think it’s okay. (…) Now I want to reassure the population, the people and the companies: there will be absolutely no additional tax in 2022.
Adrian Câciu, Romanian Minister of Finances
Romanian Minister of Finances highlighted that the measures must come from the business environment and society, emphasizing that there will be “absolutely no additional tax” in 2022.
This comes in a context when there is a debate within the Governing Coalition in Romania. While Socialists want a renegotiation with the European Commission of the Resilience and Recovery Plan, the Liberals refuse to do that as they negotiated the PNRR in the first place. Notably, the negotiations of the Liberals with the European Commission didn’t have the requested transparency, and some clauses are still not publicly disclosed.
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