Romania’s Ministry of Finance has devised a plan to offer fiscal amnesty to taxpayers with outstanding debts and incentives to those who pay their taxes on time, Nicolae Ciucă, the president of the National Liberal Party (PNL), announced on Thursday, August 29. 

Under the new measures, individuals and businesses who have not yet settled their tax debts will have the opportunity to do so by November 25, 2024, and benefit from a 100% cancellation of late payment penalties and interest, News.ro reported. This initiative is designed to encourage debt repayment and improve the overall collection of state revenues. 

For those who have consistently paid their taxes on time, the Ministry of Finance is planning to introduce a 3% fiscal bonus. This reward is intended to acknowledge and incentivize responsible financial behavior. The bonus can be utilized for future investments or to offset tax liabilities in the coming year. 

The PNL leader emphasized the importance of these measures, noting that through this initiative, the authorities could recover approximately 20-25% of the outstanding debts, which amounts to around RON 60 billion (EUR 12 bln), based on the Finance Ministry’s estimates. 

While Finance Minister Marcel Bolos can bring this measure to the cabinet, in order to implement it, he also needs the support of the Social Democratic Party (PSD) and Prime Minister Marcel Ciolacu. Tensions between coalition partners PSD and PNL have risen in recent months as both party leaders will compete in the presidential elections at the end of November. 

Romania is struggling to contain its budget deficit, which has climbed above 4% of GDP in the first seven months and could increase further to 7% of GDP by the end of the year.

andrei@romania-insider.com

(Photo source: Inquam Photos / George Călin)