PM Boc: Measures taken so far aim to curb tax evasion

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The measures taken by the Government so far aim to prevent or eliminate tax evasion, as the case may be, and sustain business under the current hard economic conditions, Prime Minister Emil Boc told the opening of TIMM 2009 Small and Medium-sized Enterprises Trade Convention.

„I am aware that not all the adopted measures are received with open arms. They have been conceived as a package aimed at preventing or eliminating tax evasion, as the case may be, and to sustain economic activity under these difficult economic conditions”, underscored Emil Boc.

In the Prime Minister’s opinion, every state can meet its social obligations only after producing the needed prosperity and always you must „to produce something first and distribute it afterwards”.
In this context, PM Boc referred to the Government taken measures, the first being the payment of the central budget debts to the companies, meaning a budgetary effort of almost one billion euros.

Secondly, the head of the Government said the efforts were aimed at keeping on the flat tax and VAT and promised that, this year, the social contributions will be also kept at the current levels. Emil Boc underlined that the budget is oriented toward jobs creation, and the
keeping of the current ones.

„As a first, in Romania, 20 percent of the budget is allocated to investments. Obviously, from the moment when the budget is adopted till the moment when money produces effective results for our daily life there is a lapse of time needed for the organization of the tenders, their adjudication, the works start. We already have signals that the money already produces results in the economy, by keeping the current jobs.

20 percent of the money is allocated to massive public investment in infrastructure, either for the transport system, education, health care, agriculture or environment protection etc.), said the Prime Minister.
Emil Boc reminded the modification of the public acquisitions law, as well as the fact that the Community funds absorption has become an absolute priority for the Government he heads. In his opinion, Romania is on the right path to be able to take advantage of the almost 30 billion euros in European funds in order to „fundamentally” modernize the country.

„We simplified the legislation, shortened deadlines, offered much more advantages to entrepreneurs and the business milieu benefits during this cycle of one billion euros allocated to SMEs alone. As well, as regards the Labor Ministry components, we have important amounts of money for aiding enterprises to hire jobless or people who have not been employed or some other measures and the Government managed to achieve in four months what its predecessor did in two years in terms of projects submitted and projects accepted for funding”, said Boc.

The Executive’s head also reminded CEC and Eximbank capitalization contracts through which SMEs will also find financial resources and the fact that, on Wednesday, the loan agreements with the European Commission and the International Monetary Fund will be finalized.

‘There are optimistic conditions that make us hope the business milieu will improve and, implicitly, the Romanian economy as a whole’ said Boc.
The Prime Minister also said that the authorities are working on making good on their promises to exempt reinvested profits from taxation in an attempt to support the business milieu and simplify tax legislation.

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