Finance Minister Seeks to Reduce Cash Transaction Volume

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Finance Minister Tanczos Barna told Digi 24 that he intends to propose reducing cash transactions in certain areas this year to combat tax evasion. At the same time, the FinMin will ask Parliament to amend the Insolvency Law so that this instrument can no longer be abused for non-payment of tax obligations.

Tanczos Barna said that the estimate of revenues through the state budget for 2025 is “prudent”, so that there are no large differences between the forecasted and estimated revenues. We are not throwing money of the pen into the budget,” the minister said.

Regarding how the national tax revenue body, ANAF will meet its revenue targets, Tanczos claims that significant progress has been made in digitalizing the institution, which is starting to be seen in the level of revenue.
“The revenues from ANAF have started to show a promising trend. Things are still not very good, but 70 billion lei more than in 2023 is a good signal,” the Minister of Finance said.
Asked if he was considering resuming discussions on capping cash transactions, Tanczos recalled that there were constitutional obstacles, but estimated that there was still the possibility of reducing cash payments. He gave the example of tax collection by city halls. Switching exclusively to card payments would mean a reduction in both collection costs and personnel costs.
In addition to waiving cash payments for taxes, which he expects to do this year, Tanczos Barna said he will propose eliminating cash transactions in several specific areas of activity. We need to reduce in areas with major risk. We will come up with areas where we will greatly reduce cash transactions,” the minister said.
Another objective of ANAF in 2025 is the recovery of arrears in the economy, which it estimated at around 124 billion lei, but only a small part can still be recovered for the state budget.
“An analysis of the recoverable amounts is being made, around 38 billion lei. The rest is lost money, in companies that are bankrupt or in various stages of insolvency. Out of 124 billion, 19 billion are in state-owned companies, the rest in the private sector. We must close the loopholes through which some people take shelter when ANAF is after them. Some use insolvency incorrectly (…) The Insolvency Law must be changed to ensure that the state has the necessary leverage to pay these amounts.”
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1 Comment
  1. Panagiotis Spyridis says

    True but not enough! Romania has to make a colossal leap in order to collect the anyway low taxes. The VAT gap is the highest in the EU… above 80%. This is shocking and it means that taxes are not collected. Start decreasing taxation but hammer the cheaters by collecting the taxes properly.

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