The Ministry of Finance confirmed in a press release that Romania has obtained the agreement of the European Commission to replace the milestone in the PNRR regarding the reduction of the VAT gap and has avoided a loss of up to EUR 1 billion in grants in 2026.
Following negotiations between Alexandru Nazare, minister of finance, and representatives of the European Commission, the milestone on reducing the VAT gap will be replaced by a new one.
The new milestone will focus on structural and legislative measures to strengthen the institutional capacity of the tax collection agency ANAF to act, as well as improving legislation to support tax authorities in their collection and administration measures for taxpayers.
“This is an important result for Romania: not only do we avoid losing a significant amount of PNRR grants, but we also strengthen our credibility before the European Commission. The ANAF reform moves forward, with a focus on concrete measures that will bring sustainable results in the collection of budget revenues, and which will lead to the reduction of the VAT gap in a realistic horizon. It is a gradual but irreversible process – and which will make ANAF become a completely digital institution in the next two years, with an internal culture based on performance, not on seniority. Romania needs a modern, predictable, and transparent tax administration. This is what we are doing now, day by day, without losing sight of the fact that behind the numbers there are people – civil servants who need to be motivated and taxpayers who deserve respect,” stressed finance minister Alexandru Nazare.
According to the ministry, in the context of the discussions of the Ministry of Finance with the European Commission regarding the implementation of the reforms undertaken through the PNRR, the analysis carried out at the time of the initiation of negotiations showed that although we have made progress in the digitalization of tax administration, the actual impact on the VAT gap, in the period 2021-2024, was insufficient to fully meet the target set in the initial PNRR.
The Ministry of Finance claims that replacing the initial objective with one based on structural measures offers Romania the chance to strengthen the institutional capacity of ANAF and the Romanian Customs Authority (AVR) in the long term, while avoiding the loss of significant non-reimbursable funds.
“This represents a guarantee that fiscal reforms continue in a sustainable framework, agreed with the European Commission with direct effects on Romania’s budgetary stability and credibility in relations with European partners,” according to the institution.
iulian@romania-insider.com
(Photo source: Gov.ro)
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