PM: Romania has the highest VAT evasion, the lowest VAT collection in the EU

PM Ludovic Orban has warned on Wednesday that Romania has the highest VAT evasion and the lowest VAT collection rate in the European Union, but the level of 19pct is a reasonable one.

“We are the country with the highest VAT evasion. We have the lowest VAT collection rate in the EU. I believe that 19pct VAT is a reasonable level, which can provide the state budget with enough resources. Obviously, VAT collection needs to be improved, but to improve VAT collection the ANAF -the National Agency for Fiscal Administration- must understand that it has to change habits. The ANAF needs to be computerized,” PM Orban told private broadcaster Digi24.

Orban reminded that there was a World Bank programme available to computerize the ANAF,  but it was no longer enforced.

“This Government is committed not to increasing taxes, considering the imbalances that were created by the budget and fiscal policy practiced by the previous governments. I spoke with the business environment. Very few business people say that they want to have reductions. The only demand is related to labour taxation, the sum of the contributions that have to be paid,” the premier argued.

However, the prime minister underlined that the taxes in Romania are among the lowest in the European Union.

“The fiscal system in Romania is the one that allows Romania to be competitive in relation to all the other countries in our region. There is no need to reduce taxes and duties. They should not be raised,” Orban concluded.