The fuel prices will rise by at least 1 leu next year if Parliament adopts the budgetary-fiscal policy in the form proposed by the Ministry of Finance, said experts of the Independent Analytical Center “Expert-Grup”. In a news conference at IPN, the experts stated the rise in prices will determine an increase of 0.6% – 1.5% in inflation.
“Under the budgetary-fiscal policy, the excises on fuels will increase by 9.3%. It is a necessary rise for the Road Fund. But the rapid growth of the Road Fund does not mean much greater benefits generated by this money. The growth must be more modest and must be in line with the authoritative’ capacity to increase the efficiency of using the money intended for the road sector. This growth generates several problems, including the rise in fuel prices by at least 1 leu,” said “Expert-Grup” program director Dumitru Budianschi. He added that this method of increasing revenues from taxes becomes a direct inflationist factor and this is not welcome.
Another subject raised by the experts is the annulment of the exemptions from paying the income tax and VAT on paper, cardboard, plastic and glass waste and residues. According to Dumitru Budianschi, this will create a series of reporting problems to private individuals. At first sight, the annulment of these exemptions is an inoffensive move, but when persons bring waste paper of 10 lei to a company collecting such paper, this company will have to submit an income statement as this is another source of income.
As to the payment of VAT by farmers, Dumitru Budianschi said it’s not logical to use again the method by which the farmers pay fully the VAT and then immediately submit an application to have 60% of the taxable income paid back to them. “We do not support such a method,” he stated.
In another development, Dumitru Budianschi said the introduction of the new regime of taxing notaries and lawyers will create difficulties in administering the services provided by them. The draft policy proposes imposing a tax of 12% on these taxpayers, as in the case of legal entities, and also VAT on the provided services and a development tax.
Earlier, Deputy Minister of Finance Victor Barbaneagra said that after exchanging opinions with the given taxpayers, it was decided to preserve the old taxation system.
“Expert-Grup” also made an analysis of the reports compiled by the Audit Office. Economic expert Tatiana Savva said slight progress was made in reducing the irregularities committed by the local public authorities, though the situation as regards the public procurement and administration of the public patrimony continues to be worrisome. Some of the district councils redirect the money allocated for education to other areas and this is an additional argument in favor of reforming the education sector. The local public authorities didn’t make progress in collecting the own incomes and this shows that they do not have interest in this activity.
