Deputy Prime Minister Tanczos Barna presented on Tuesday evening a series of measures included in packages 2 and 3 of the fiscal reform prepared by the Government.
These measures aim at restructuring local administration, rethinking the taxation system for homes and vehicles, as well as limiting fiscal exceptions and capping incomes in state-owned companies.
Local Reorganizations
"Yes, there will also be a reconsideration of the personnel schemes at the level of local, municipal, and county administrations, because there need to be fewer employees there as well. The dispersion is very high. The county council with the lowest number of employees operates with almost a third of the maximum number of a county council that has never taken into account and has hired hundreds of people to perform the same activity," stated Tanczos Barna to Antena3.
The official mentioned that there are discussions about eliminating the position of deputy mayor in certain localities and reducing staff in communities, towns, or municipalities with a small number of residents.
Taxes Based on Real Value, Not Surface Area
Tanczos Barna also announced a reform of how homes are taxed: "100 square meters - I gave the example of Borsec, which is a town - cannot be compared to 100 sqm in Bucharest. And so, this value, this element of market value, needs to come into play, and properties should be taxed based on this value."
Fairer Taxes for Cars
The Deputy Prime Minister added that the taxation regime for vehicles will also be adjusted.
"Not an environmental tax in any case, but things need to be balanced because there are cars for which a tax of 40 lei is paid and they are 10 times more polluting than those for which a tax of 100 lei is paid. And there, things need to be sorted out. Today, I had a discussion with car manufacturers and importers. They also have proposals, as do the mayors," stated Tanczos Barna.
Enforcement and Limitation of Fiscal Exceptions
Another objective is the elimination of abusive exceptions from tax payments.
He specified that local authorities will receive new tools for enforcement and efficient collection of taxes.
Limiting Incomes in State-Owned Companies
Regarding state-owned companies, Tanczos Barna stated that a legislative act is being prepared to "limit both allowances and establish salaries in self-financed institutions, where salaries are in the thousands of euros."
Modifying legislation in Parliament is necessary for the implementation of these measures.