The reform regarding the taxation of properties based on market value has been removed from the National Recovery and Resilience Plan (PNRR) after negotiations between the Government and the European Commission.
The announcement was made by the interim Minister of Investments and European Projects, Dragoș Pîslaru, who specified that Romania is not giving up on this reform but will implement it outside the PNRR conditionalities.
The property taxation reform was assumed by Romania as early as 2021-2022 through the PNRR and in all negotiations with the European Commission to reduce the budget deficit, as well as through the medium-term structural budgetary fiscal plan. Milestone 237 involves the implementation of the e-Property system and, consequently, the transition to market value-based taxation.
Lack of data could cost Romania millions of euros
"Regarding the reform area, we were discussing certain reforms that seemed to lead to substantial penalties, of several billion euros, so I remind you that there are two components, the investment component, you need to have the investments completed, and I have clearly explained that we have achieved this; on the reform side, there were indeed reforms that had certain difficult-to-implement components.
And what we managed to do is indeed to be able to achieve, for example, the removal of a reform that could not be implemented at this time, such as the property taxation-related investment, as we have had, indeed, some setbacks recently, it was not necessarily, at this moment, a reform that met society's expectations.
We managed to introduce a transitional period in the Urban Planning Code to be able to be put into practice, which now allows the law to be approved without any additional problems," stated Minister Dragoș Pîslaru after the government meeting.
According to the Minister, the issue was not the e-Property IT platform, but the lack of necessary data from the field for system implementation.
"The platform will be implemented, the issue was the collection of data from the field and the fact that the lack of that data from the field that did not come on time, the risk was to incur a significant penalty on that reform," the official further explained.
When asked about the amount of the penalty, the Minister stated that it was about "several million euros," without indicating an exact sum.
Read the full article Property taxation reform based on market value removed from PNRR after negotiations with the European Commission - Pîslaru: Keeping it would have led to penalties on Curs de Guvernare