PM Orban: We have highest VAT evasion, lowest VAT collection rate in EU

Prime Minister Ludovic Orban said on Wednesday that Romania has the highest VAT evasion and the lowest VAT collection rate in the European Union, but the level of 19pct is a reasonable one. 

"We are the country with the highest VAT evasion. We have the lowest VAT collection rate in the EU. I believe that 19pct VAT is a reasonable level, a VAT that can provide the support of feeding the state budget with sufficient resources. Obviously, VAT collection needs to be improved, but to improve VAT collection the ANAF [the National Agency for Fiscal Administration] must understand that it has to change habits. The ANAF needs to be computerized," Ludovic Orban told private broadcaster Digi24. 

He added that although there was a program of the World Bank to computerize the ANAF, it was no longer implemented. 

"It is enough that this Government is committed not to increasing taxes, taking into account the imbalances that were created by the budget and fiscal policy practiced by the previous governments. I spoke with the business environment. Very few business people say that they want to have reductions. The only demand is related to labour taxation, the sum of the contributions that have to be paid," said Ludovic Orban. 

However, the prime minister emphasized that the taxes in Romania are among the lowest in Europe. 

"The fiscal system in Romania is one that allows Romania to be competitive in relation to all the other countries around us. There is no need to reduce taxes and duties. They should not be raised," said the prime minister.