Tax

Government sources have provided clarifications on Thursday with regard to the Finance Ministry's reform list which was leaked this morning, focusing mainly on the issue of the Primary Surplus target.

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Romania's fiscal watchdog, the Consiliul Fiscal - Fiscal Council - has echoed concerns over government plans to start reducing Value Added Tax and income tax as a way to boost disposable income and get people to spend more.

By Stathis Kousounis

Greek tourism bodies are forming a strong front ? including a dedicated inspection unit ? against the phenomenon of illegal tourism accommodation. The latter constitutes a major source of tax evasion in the country, as for two in every five nights spent by tourists in Greece are in undeclared accommodation.

Bulgaria, which has one of the lowest corporate tax rates in the EU, has objected to the introduction of a 26% withholding tax on all transactions originating from sources in Bulgaria, Cyprus and Ireland by Greece.

Prime Minister Victor Ponta thinks it is 'a normal gesture' not to answer questions of journalists from media companies that do not pay their taxes, while as 'holding a public office' he would answer the questions of media that fulfil their fiscal obligations.

Photo credit: (c) Liviu SOVA / AGERPRES FLOW

Prime Minister Victor Ponta talked about a 'brotherhood of tax avoiders' on Monday, providing the example of media companies owing more than 100 million lei (over 227,000 euros) to the state budget. Victor Ponta a afirmat luni c? exist? "o fr??ie a evazioni?tilor fiscali", dând drept exemplu companii media care datoreaz? bugetului de stat peste 100 de milioane de lei.

Government's savings in the national budget over the first three months of the year will permit a reduction to 20 per cent, from a current 24 per cent, in the Value-Added Tax (VAT) or a 9-per-cent reduced VAT in the months to come, according to governmental macroeconomic adviser Cristian Socol.

Photo credit: (c) Ilie BUMBAC / AGERPRES PHOTO

A rough idea on the list’s content

-A 1 cent “fat tax” on products containing sugar and fat (or even … salt)

-“Fines” of 10% -15% to 50,000 euros for individuals who exported untaxed cash

- Property tax in 2015 in order to collect about 2.5 billion, but with targeted changes so owners of cheaper property enjoy a “breather”

-15,000 of tax free yearly income

The Government of Romania should reconsider the timing and the size of planned tax cuts, Andrea Schaechter, IMF mission chief for Romania, told a conference call on the release of the 2015 Article IV Consultations with Romania.

Photo credit: (c) Cristian NISTOR / AGERPRES ARCHIVE