Romania’s Fiscal Amnesty: A Bid to Fill Budget Gap With Tax Forgiveness

The Romanian government is facing a budget deficit of over 70 billion lei and is resorting to new measures to address the shortfall. A new ordinance is being considered by the Ministry of Finance, which includes increased penalties of up to 50% for debtors. However, the government also plans to incentivize timely tax payments with a 3% bonus for compliant companies. The most significant measure is a fiscal amnesty for debtors, where individuals and businesses can have their penalties and interest waived if they pay their outstanding taxes by November 25th. Additionally, individuals will be granted a 30% reduction on their base debt. According to Minister of European Funds Adrian Câciu, the government anticipates collecting 5-6 billion lei from this initiative, although the potential could be significantly higher if all debts are paid. This measure is part of a broader effort to strengthen tax collection and reduce the budget deficit.