The assumption by the Government of political responsibility for a number of laws shows that there is dissension inside the government coalition. Given that the laws referring to the financial sector may affect obscure interests, pressure could have been exerted on politicians from outside to make them block these bills. Thus, the Government did right when it assumed political responsibility for this package of laws, though some of them were evidently populist in character, given the coming parliamentary elections, the Independent Analytical Center “Expert-Grup” says in the monthly publication “Economic Realities”, IPN reports.
In a news conference, the head of the parliamentary commission on economy, budget and finance Veaceslav Ionita said that the bill to amend a number of laws concerning the secreting of real estate will cause damage to the state budget. “Expert-Grup” determined that the law is aimed at facilitating the procedure for selling secured property. Before the law was adopted, the sale of secured property could be blocked or at least delayed by the mortgagor.
The buyer of the secured property was unable to diminish the value of the tax for transferring the relevant VAT to the account until the mortgagor didn’t issue a fiscal invoice. Usually, in order to maintain control over the secured property, the mortgagor could refuse to issue the invoice. Thus, it was non-advantageous for the buyer to purchase the property as they could not show a lower VAT. The new law provides that if the mortgagor does not issue the fiscal invoice within 15 days of the sale of the secured property, the buyer has the right to transfer the VAT to the account.
“Expert-Grup” says this provision favors first of all the financial institutions as they will be able to sell the secured property easier, but it disadvantages the mortgagors as they will lose an instrument of controlling this mortgage. It’s not excluded that there will be performed fictitious transactions to diminish the VAT that must be paid into the budget.
