Romanian Court Backs Tax Cut Bill

by Ulrika Lomas, Tax-News.com, Brussels

26 December 2016

Legislation to eliminate more than 100 taxes and fees in Romania will be sent back to parliament after being backed by the country's constitutional court.

Romanian President Klaus Iohannis challenged the legislation, which was approved in October, on the basis that that the tax cuts hadn't been properly costed, nor their impact fully considered. However, the court ruled on December 16 that the law was valid and did not breach Romania's constitution.

The law was sponsored by the Social Democratic Party, which won the recent parliamentary elections. It is designed to ease the tax and regulatory burden on Romanians by removing 102 taxes and fees, including the television and radio licensing fee, and charges for such things as second-hand car registration, temporary passports, and access to various sporting and recreational activities.

However, President Iohannis urged parliament to re-examine the bill before it is introduced from January 1.

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