Gov’t aims to hire 35,000 tax consultants. Economic growth higher than 5.2pc expected

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The government will hire about 35,000 tax consultants to help the tax payers fill in the tax statements, after introducing in 2018 the tax on global revenues (personal income tax), Finance Minister Viorel Stefan said Wednesday evening. He added that the average earnings for the consultants will be of about RON 10,000 per month. According to this would lead to expenditures for the Romanian state of about RON 350,000 per month, i.e. RON 4.2 billion (almost EUR 1 billion).

Stefan said each tax consultant would manage the tax statements of about 200 households. He did not mention the funding source for the payments of the tax consultants. These specialists might come from the tax authority and by converting some consultants currently working with private companies.

The source has added that the increase of state expenditures by RON 4.2 billion comes on the background of falling the tax rate from 16% to 10%, as well as ‘zero’ tax rate for revenues below RON 2,000.

The forecast of 5.2% growth was quite cautious

Romania could record in 2017 an economic growth higher than the estimated 5.2% of GDP, an important contribution to this will come from agriculture, Finance Minister Viorel Ştefan said.

“There are signals that what some very hotly criticized at the beginning of the year – an economic growth of 5.2% that allegedly is unrealistic – there are signals that it was a pretty conservative estimate and we expect an even higher growth. Nobody considered that the 5.2% economic growth is not based on the contribution from agriculture. We expect the agricultural sector to make a further contribution to the GDP this year. It means a higher GDP. Currently, these are the prospects of the agricultural production in 2017. It gives us hope that it will improve,” Viorel Stefan said for Antena 3 TV.

The Finance Minister added that the macro-economic indices in the first two months of the year show an increase in industrial production, increase in exports to other EU countries, the increase in the number of jobs by 44,000.

“Romanian economy benefits from higher confidence, as in the period before the crisis. The policies of fiscal easing, the abandoning of austerity policies, the programmes of production incentives that we are committed to and we have budgeted in 2017, have transmitted a confidence signal that determine the behaviour of the business environment, encouraging on the one hand. On the other hand, look at the signals we receive from rating agencies. All ratings are preserved and the prospects are improved. On Monday we borrowed on a Eurobond issue, we drew EUR 1.75 billion at the lowest yields in history. So, for an issue on 10 years, Eurobonds were bought on a 2,411% interest, financing costs. This has not happened before. These are signs that the financial markets, the economic and financial environment believe in our programme,” the Fin Min said.


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