“Tax collection was lower than projected last year mostly maybe because of the reorganization of the ANAF (tax authority i.e.). I am not happy with the collection level and I will have to take some very harsh steps soon. I intend to do everything in my power to curb tax evasion,” said Ioana Petrescu, 34. Romania’s new finance minister was appointed at the beginning of March after the National Liberal Party left the government leading to the creation of the Ponta III Cabinet.
Ioana Petrescu said the decline in budget revenue despite an increase in consumer spending was due to the an economic growth driven by exports, which entails reimbursement of VAT, and agriculture, a sector that is “not properly taxed”, as well as to the many companies filing for insolvency to avoid paying taxes.
“Tax evasion is high in the fruit and vegetable, oil sectors, there’re always problems with the VAT reimbursement because VAT is reimbursed to companies that did not actually carry out the activities for which they claim it,” she added.
The new finance minister who is a Harvard graduate says the fiscal system needs to be reconsidered from the taxpayer’s standpoint and become more predictable for the business environment.
“I will make every effort to cut the time taxpayers spend standing in line, to promote online tax payment. We also have to be transparent and discuss fiscal measures we take with the taxpayers and consult with the business sector to create better predictability,” Ioana Petrescu said.
As for the EUR0.07 per liter excise duty in force as of Tuesday, the finance minister said budget revenue is estimated at 2 billion lei this year and the impact of the step returning EUR0.04 paid as excise duty to carriers will amount to RON353 million.
(English version by Loredana Fratila-Cristescu)