President Iohannis on new tax measures: Step in the right direction, we know we have systemic problems

The new tax measures prepared by the government are "a step in the right direction", in the context of "systemic problems" in Romania, president Klaus Iohannis said Wednesday in a press statement.

"A step in the right direction. We must see things as they are. The fact that now will not solve all the systemic problems accumulated in 30 years is again something that is easy to understand, but steps must be taken. We can't continue to pretend that public money is often spent inefficiently, we can't turn a blind eye to tax evasion and we can't let resources that should be available to the local budget go unused. How this is done is an art that the Government must discover and come up with those measures that solve the problem both in the short term, and that also solve systemic problems," said the president.

In this context, Klaus Iohannis said that the draft law can also be amended in Parliament, even if it is submitted through the procedure of assumption of responsibility.

"We know that we have systemic problems. In my opinion, it is a first step that is being taken and after this draft is debated it will go to Parliament where improvements, adaptations and so on are again possible, even under the procedure of assumption of responsibility, amendments are possible if they are found necessary. Let's start from the premise that some problems are now finding a solution and we are moving forward," said the president.

Prime minister Marcel Ciolacu said on Wednesday, at the beginning of the Government meeting, that the draft law on some fiscal budget measures, for which the Executive is to assume responsibility, proposes to "re-establish the tax system on a fair basis", so as to stimulate "honest work" and discourage "tax optimisation and evasion loopholes".

The prime minister added that the draft law provides for a "balanced approach", based on four components: reducing state expenditure; increasing tax collection and combating tax evasion; over-taxing luxury, vice and excessive profit and ensuring tax fairness among taxpayers.