President Iohannis has promulgated the Tax Procedure Code

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President Klaus Iohannis has signed on Monday a decree for the promulgation of the Law on the Tax Procedure Code, the Presidential Administration announces.
The Tax Procedure Code was approved by the Senate on April 28 and the by Chamber of Deputies on June 24, following the approval by the government in March.
The law on the Tax Code was sent back on Friday to parliament for review by President Klaus Iohannis.
Also on Monday, the president signed a decree promulgating the law on cancellation of several tax obligations.
President Klaus Iohannis rejected on Friday the new Tax Code and returned the draft law to Parliament for reconsideration.
“We support the tax easing and simplifying the tax by reducing certain taxes on condition the prerequisites for fiscal consolidation and predictability are set. From this perspective, we believe that the new tax code may be implemented only after a rigorous and thorough analysis of the implications of the whole set of fiscal and budgetary measures on building the general consolidated budget, both for 2016 and for future years and only in compliance with the obligations assumed by Romania and with the domestic laws concerning financial and budgetary discipline,” said the reconsideration request for the Tax Code published on the Presidential Administration website.
The President also said that the “economic well-being unanimously desired by all political forces in Romania for the benefit of citizens and economic operators can only be achieved through responsible fiscal-budgetary approach, predictable on long-term, consistent with the sustainable economic growth objectives.”
“The mere tax cuts, without being accompanied by continued increase in revenue collection and a sustainable resettlement of budgetary spending, for more rational spending of public money, can lead to the accumulation of imbalances that will affect the future economic and social developments,” the request further reads.
Although President Klaus Iohannis decided to send it back to Parliament, Prime Minister Victor Ponta reiterated the idea that the Tax Code is a good one and this is a good time for implementation.
The new Tax Code will be put into effect anyway, by emergency ordinance or by taking responsibility, PM Ponta said. Ponta also voiced regret that the political consensus on the Tax Code issue has been lost.
We remind our readers that the presidential decision to return the Tax Code to parliament on reasons related to the VAT cut from 24 to 19 percent was a controversial one even for analysts, as the VAT cut was one of the electoral promises for his mandate made by Klaus Iohannis. Thus, we have the Tax Procedure Code approved ahead of the Tax Code itself.

PM Ponta to unveil decision on Tax Code enforcement

PM Victor Ponta is to announce the solution for enforcing the new Tax Code. PSD interim chairwoman Rovana Plumb said a solution was agreed in the ruling coalition’s meeting on Monday but the prime minister will announce it.

Plumb pointed out the ruling coalition is endorsing the Tax Code in the way it was drafted by the Government and adopted by the Parliament.

“We took counsel together in the coalition and we all endorse the Tax Code in the way it was proposed by the Ponta Government and adopted in Parliament. The way the reexamination’s request will be settled will be communicated by PM Victor Ponta (…) There won’t be another meeting on this topic,” the Social-Democrat interim leader said.

On the other hand, the prime minister did not attend the meeting of the ruling coalition, as he left to undergo a medical check in Turkey, as Rovana Plumb revealed. She said the prime minister’s health condition is very good and that Ponta would return in Romania in the evening.

Read also an insightful analysis on this topic here: http://www.romaniajournal.ro/short-stories-about-the-tax-code/

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