The new mechanism for calculating local taxes and fees may be expanded depending on the decision to be made in the coalition, Prime Minister Nicolae Chuke said, Agerpres reports. We clarify that according to the Tax Increase Decree (OG 16/2022), taxes on buildings will increase from 2023 in Bucharest by 2 times, and on a house in Cluj by more than 3 times.

The Prime Minister clarified that the mayors raised the issue of not having enough time to agree on the rules for applying these provisions of the Fiscal Code.

“Yesterday I had a meeting with the Association of Mayors of Communes, the Association of Mayors of Cities and Municipalities and the National Union of County Councils from Romania. Each of them raised this issue, during which they emphasized that the mechanism to be put into effect once this provision is in place is as complex as possible and, practically, there is no time required to that there should be a correlation between the rules that are provided in notarial structures, those that are provided for and according to which they work administratively (…) in city halls and at the level of local authorities,” Chuke said.

Chuke noted that the issue will be discussed in the coalition to continue the measure.

“As such, we adopted the proposal, and it remains for us, together with other members of the coalition, to analyze it and, depending on what decision we will make in the coalition, to extend it, we are not canceling it, but it is about extending the deadline,” the prime minister added Jer.

On Monday, the mayor of the city of Cluj, Emil Bock, after the meeting of the government with the prime minister, said that the entry into force of a part of local taxes and fees in the Fiscal Code will be postponed.

“We received the Prime Minister’s commitment that the entry into force of the Fiscal Code will be postponed until these regulations are agreed upon and the mechanisms for implementing the provisions are clarified. It is about taxation, local taxes from the Fiscal Code, a year ago,” Bock said.

HotNews.ro also wrote on Monday that there is some chaos in the part of the Tax Increase Decree (OG 16/2022) that deals with the property tax increase, in the sense that there are problems with implementation. Some town halls would send questions to the Ministry of Finance, Adrian Vascu says on his website. Also, the city halls requested to provide information to taxpayers who are owners of non-residential buildings.

In addition, it is not known who is responsible for the values: the Ministry of Finance, notaries, etc. State notaries, for example, do not take data from there.

A decree amending the Tax Increase Decree may be passed in the fall, as there are more problems with some of the measures passed in July.