A first meeting of the Working Group at the level of the governing coalition for establishing the system of breakdown and balancing of income tax and value added tax allocated to local public administration authorities took place on Wednesday at Victoria Palace.
The meeting, chaired by Deputy Prime Minister Tanczos Barna, coordinator of the Working Group, brought together representatives of the Ministry of Finance, as well as representatives of the political parties within the government coalition, from all administrative-territorial levels - county councils, municipalities, cities and communes.
Prime Minister Ilie Bolojan also participated in the discussions.
"The first meeting aimed to centralize the points of view of the political parties regarding the financing needs at the local level and the distribution quotas of income tax and value added tax. Following the discussions, support emerged for maintaining the income tax as a full source of financing for local public administration, while at the same time reiterating the need for balance in terms of gradually reducing the pressure on the national budget from the value added tax equalization system. We agreed that the Ministry of Finance should carry out simulations based on several scenarios, and that, based on these analyses, dialogue with the associative structures of local public authorities should be initiated. The Government's objective is to build a balanced budget that supports the development of local communities, in parallel with fiscal-budgetary consolidation and continuing efforts to reduce the budget deficit," declared the Deputy Prime Minister Tanczos Barna at the end of the meeting, quoted in a press release.
The mission of the Working Group is to analyze the levels of tax distribution to local public administration authorities, the opportunity of possible changes, the method of application and their impact, in order to substantiate government decisions regarding the development of the state budget for 2026, the cited source specifies.
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