The International Monetary Fund (IMF) after consultations with Romania in accordance with Article IV.

Mainly, the reduction of exceptions is a step forward. However, according to the IMF, some measures, including new sales taxes, are not in line with best practice and should be reviewed.

The turnover taxes referred to by the IMF are:

• 1% tax for large companies if profits are 16% lower
• an additional tax for banks of 2%, for the period from January 1, 2024 to December 31, 2025 (later it will be 1%).
• additional tax of 0.5% and for oil and gas companies with a turnover of more than 50 million euros.

Further fiscal reforms are also needed to raise budget revenues by at least 2% of GDP on top of gains from the recent fiscal package, the international body said, to bring the deficit to a sustainable medium-term path while ensuring that all taxpayers pay their share. .

According to the IMF, the elimination of loopholes and tax benefits should be a key point of this reform, including with regard to differentiated VAT rates.

“When this is achieved, the possibility of restoring progressive taxation should be considered,” the Fund believes.

Taxation and spending policies must become more predictable, the IMF says.

It also says that early announcement of tax reforms will help businesses and households adapt to the changes.

The purpose of consultations based on Article IV is to examine the financial and economic situation at the national level and to formulate some general recommendations on monetary policy, financial and economic policies that should be followed to ensure stability and positive development at the level of the economy. .

See also:

Head of the IMF mission in Romania: Many other programs are needed to improve efficiency, revenues in general / 3% GDP deficit will not be achieved in 2024