The association of Romanian private schools and kindergartens expressed disappointment with the Government's decision to defer by (at least) one year the bonus scheme under which the employers are allowed to register deductible expenses worth up to RON 1,500 (EUR 300) for their employees that spend the money for kindergartens or nurseries, Hotnews.ro reported.

The Finance Ministry argued that the measure would cost the budget some RON 4.5 billion (EUR 925 mln). Thus, the impact on the budget deficit would be 0.4% of GDP.

Moreover, the law that provides for the bonuses (Law 239/2020) was adopted without specifying the financing sources for the fiscal measures instituted and without presenting any estimates on the budgetary impact at the time of adoption, the ministry stated.

Another issue related to the application of fiscal measures established by Law no. 239/2020 refers to the fact that both value added tax and excise duties are indirect taxes regulated at European Union level by directives that are binding on all Member States and in their case no other tax facilities can be granted than those provided for in expressly by those Directives.

andrei@romania-insider.com

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