Gov’t – reservations regarding the tax on turnover, overall income tax for individuals

A final decision regarding the option to apply the tax on turnover for companies will be made by Premier Mihai Tudose after the outcome of the ongoing simulations, government sources say.

Reportedly, the Prime Minister does not agree with a ‘classic’ tax on turnover, but with a ‘gradual and on some activities’ tax on turnover, the quoted sources say, hotnews.ro informs. The timeframe for making a decision is not clear for the moment, but the sources said on Monday the head of the government will decide by autumn.

In regard to the overall income tax for individuals, included in the governing programme, the Premier is reportedly rather reluctant, considering the ANAF capacity to deal with this kind of tax, the sources said.

BNR’s Isarescu: Tax on turnover – this idea did not come from us

National Bank Governor Mugur Isarescu said on Monday that the idea of tax on turnover did not come from the BNR representatives, the media should look for the answer at the government.

“The tax on turnover is called in the US, for example, ‘sales tax’, so it is a tax on sales; this is included in any economics book. I don’t know if the idea has come from them, but you could ask the government representatives. Tax on turnover is used in many countries of the world. I am not saying it is good or bad. What does it mean if the idea came from someone working with the National Bank? It has no importance. What is important is who gets the idea, who wants to enforce it. I don’t believe the idea came from us. I don’t even know if such an idea is a right-wing of left-wing one,” Isarescu said.