News

Daily Newsletter - 1 September 2017

Summary

FIC (1)

FIC: VAT split payment will not combat tax evasion (Source: business-review.eu)

The Foreign Investors Council (FIC) believes that the recently adopted mandatory split VAT system will have significant negative impact on businesses in Romania, be they large or small. FIC believes that before implementing this policy the Government should have consulted with the European Commission and, at the same time, run an impact assessment to understand the effects this will have on fiscal evasion and to estimate the implementation cost for the business environment.

FIC: Split VAT payent system is not a good strategy to combat tax evasion (Source: govnet.ro)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: romaniajournal.ro)

FIC issues warning (Source: angajatorulmeu.ro)

Mandatory split VAT to have major negative impact (Source: comunic.ro)

Split VAT won't solve tax evasion problem (Source: curierulnational.ro)

Split VAT to confuse companies, ANAF (Source: capital.ro)

FIC issues warning (Source: romaniacurata.ro)

Burdening honest tax-payers not good strategy (Source: bursa.ro)

Split VAT should be a pilot project (Source: businesscover.ro)

Mandatory split VAT to have major negative impact (Source: 1asig.ro)

Mandatory split VAT to have major negative impact (Source: zf.ro)

Mandatory split VAT to have major negative impact (Source: bizlawyer.ro)

Mandatory split VAT to have major negative impact (Source: agerpres.ro)

Split VAT to cause major problems (Source: cursdeguvernare.ro)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: hotnews.ro)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: republica.ro)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: ziare.com)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: diacaf.com)

FIC: Split VAT system to bring major operational bottlenecks in companies’ activity (Source: mediafax.ro)

Video (Source: Prima TV)

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Macroeconomic News (4)

Tax collection must improve 

Romania must have better tax collection and one of the crucial elements of fiscal policy that the country lacks is revenue globalization, accompanied by deductions, according to Liviu Voinea, deputy governor of the National Bank of Romania (BNR).

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Government in aggressive fuel taxation push 

The RON 0.32 fuel surcharge, which will be implemented in two stages, could translate into a RON 0.38 per liter increase in fuel prices. This would make the local fuel taxation system the most aggressive in Eastern Europe.

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27 companies will be transferred from state ownership to FSDI 

27 companies will be transferred from state ownership to the Sovereign Development and Investment Fund (FSDI) once the fund is established. "Technically, this is a sort of privatization, a transfer of shares from the state to a private entity," noted representatives of the Ministry of Finance.

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Romania used only EUR 120 million of EUR 21 billion worth of EU funds 

Romania has managed to attract so far only EUR 120 million of the EUR 21 billion made allocated by the European Union from the 2014-2020 budget through the Cohesion Policy. The effective absorption rate is 0.5%.

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Financial News (3)

ANPC fined banks 

The National Consumer Protection Authority (ANPC) has fined a number of banks RON 300,000 for breaking the law. ANPC inspectors looked into the affairs of 17 financial institutions in the first half of this year. The banks were warned and fined for charging abusive fees and increasing interest rates without lawful reasons.

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NPL rates improve 

The NPL rate reported by local banks reached 8.32% at the end of June, down 1.3 percentage points year-on-year, according to data released by the National Bank of Romania (BNR). This is the lowest NPL rate since 2009.

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Eurobank wants to take RON 235 million in Bancpost capital 

Eurobank, the Greek bank that owns Bancpost, wants to withdraw RON 235 million of the latter's share capital in order to return it to shareholders. According to Eurobank, Bancpost has excess capital. The move requires the approval of the National Bank of Romania (BNR).

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Legislative News (1)

New PPP rules could appear before October 1 

The new public-private partnership rules could come into force by October 1, according to the Minister of Trade, Ilan Laufer. The Minister added that the draft bill had met with universal approval.

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Politics (2)

Minister replies to US Embassy 

The Minister of Justice, Tudorel Toader, stated on Thursday that the US Embassy's reaction to the judiciary amendments is a normal reaction of concern.

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PNL blasts fuel surcharge 

Raluca Turcan, senior vice president of the National Liberal Party (PNL), said the fuel surcharge would have Romanians pay RON 15 more for every full tank and called the surcharge a way of hiding the government's incompetence.

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