Next year, Romania will have a 19% VAT rate, same as Germany. Foreign investors admit it: it was time to reduce the VAT rate, one of the highest in Europe. At the same time, the investors warned that a major deficit could push taxes up again. FIC representatives say that the crucial aspect is sustainability, not the rate itself.
The Fiscal Code's passing is a step toward the clarification of Romania's taxation system, but the Fiscal Procedure Code still includes a number of unclear aspects, according to Dan Anghel, vice-president of FIC. "Our proposals did not touch the taxation levels, but focused instead on the technical aspects in order to clarify certain parts of the two codes," said Anghel.
FIC hailed the VAT rate cut scheduled for January 1. Vice-President Daniel Anghel told the media that Romania has a very high VAT rate and that many developed states tax different products at different rates.
Daniel Anghel, vice-president of FIC, stated yesterday that the fight against tax evasion is very important and that ANAF should focus on high fiscal risk zones. "We have asked the authorities to strike a balance between constraining and encouraging voluntary compliance within ANAF's anti-tax evasion campaign because there's a risk that poor measures could end up hurting honest tax-payers," said Anghel.
The president and prime minister of Romania earn far too little relative to their responsibilities and should not be paid less than the CEOs of state-owned companies that they themselves appoint, either directly or indirectly, according to Mihai Bogza, president of Bancpost and a member of FIC's board.
The European Commission did not approve the Fiscal Code and the International Monetary Fund team will not visit Romania next month, according to the Minister of Finance, Eugen Teodorovici. The team of EC experts will leave Romania today, four days ahead of schedule. "The Fiscal Code is the only issue we failed to see eye to eye," said the Minister.
Aside from the VAT rate cut, the new Fiscal Code features a series of other significant measures, such as an increase in local taxes, the taxation of microenterprises based on the number of workers, the end of the EUR 0.07 fuel surcharge and the extension of health insurance taxes to investment earnings.
The average power bills sent to the final consumers will drop between 0.5% and 1% in the second half of this year, according to the National Regulatory Authority for Energy (ANRE), resulting from a high efficiency co-generation bonus cut. The decision has already been approved by the ANRE's Regulatory Committee.
The row between lawyer Gheorghe Piperea and the National Bank of Romania (BNR) flared yesterday as the lawyer accused the BNR of having influenced the course of justice at a seminar held in Sinaia and demanded that the CSM look into the matter. BNR vice-president Bogdan Olteanu called Piperea's statements "an insult to the judges".
The parent banks' exposure to their Romanian subsidiaries dropped by around 16% in 2014, according to the annual report of the National Bank of Romania (BNR). The report noted that "cross-border deleveraging had increased over the course of 2014, but was not allowed to get out of control". Deposits attracted on the Romanian market are now the banks' main financing source.
The Romanian banking system is still relatively undersized, compared to the other EU member countries, according to the annual report issued by the National Bank of Romania (BNR). The financial intermediation rate, which calculated as the GDP percentage of the gross banking assets (60.8%), continues to be far below the EU-28 average, while the lending market has been stagnating for some time. The local market is still dominated by credit companies controlled by foreign interests.
BT, BRD and Proprietatea Fund (FP) shares are the most popular choices of the leading investment funds, which had sunk a total of RON 631 million in these stocks. The leader of BVB investors is NN IR Equity, a fund based in Luxembourg.
Residents of Brasov's Tractorul neighborhood will see their public heating system modernized under a CHF 4.3 million deal signed by the Minister of Regional Development Sevil Shhaideh. The funds will be provided by the Swiss-Romanian Cooperation Program (PCER).
Law firm Dentos has advised Polish company AmRest during its takeover of the Starbucks operations in Romania and Bulgaria. AmRest, owner of more than 800 restaurants located in Europe and Asia, entered the Romanian market this spring with the Starbucks franchise acquisition.
For the second time in 24 hours, Liviu Dragnea has urged Prime Minister Victor Ponta to return to Romania. The public calls made by Dragnea and Sebastian Ghita, as well as the lack of any official response from Ponta, currently recovering in Turkey after undergoing surgery on his knee, indicate that the main party of the ruling coalition is going through a very troubled period.
Money saved by using health cards would be used to pay the salaries of medical personnel, according to statements made by Minister Nicolae Banicioiu. The Minister estimated that the implementation of health cards would save the Ministry around RON 100 million per month.
Romania's top ten furniture manufacturers hired 5,000 workers during the crisis years, going from 4,700 employees in 2009 to 12,200 at the end of 12,200. The creation of new jobs was driven almost exclusively from the growing foreign demand for Romanian furniture.