Romania's income tax revenues in the first quarter of this year have been lower than during the same period last year, mainly because of the many companies that became insolvent during this period. Prime Minister Victor Ponta, who made the announcement about the lower revenues but did not give a figure for their level, said the country must speed up making the changes to the insolvency law, as some companies use insolvency as a means to avoid paying taxes, while continuing in business.

The PM said penalties need to be enforced for companies which use insolvency to avoid taxes, and this will be the Government's priority in the second quarter of the year. The agreement with the International Monetary Fund IMF is also one of the reasons the Government is trying to up its budget revenues and show budgetary discipline, as at the end of the second quarter the new agreement with Romania will go to the IMF board for review.

editor@romania-insider.com