New fiscal code might dodge Parliament unless Govt. approves changes

The adoption of changes to the Fiscal Code is much overdue and the Romanian Government tries to solve the issue on the brink of its deadline in this regard, possibly through an ordinance that would keep the bill away from Parliament.

According to Finance minister Sebastian Vladescu, the renewed Fiscal Code will not involve changes to the VAT or the flat tax before 2008, but starting next year will support increased secondary taxes such as those on property.

The head of the Finance Commission of the Romanian Senate, Varujan Vosganian, said on Monday that the fiscal code might be introduced with the help of a governmental ordinance.

If the draft is ready by Wednesday the latest, it has a chance to be debated in Parliament, otherwise its only chance to be introduced before January 1, 2007 is for it to be imposed via such an ordinance, he said.

The current parliamentary session will conclude by the end of June and the draft legislation must pass the finance commissions of the two chambers and be discussed in a joint session before then. It has to be approved at least six months before it comes into effect.

Minister Vladescu reaffirmed on Monday that the basic taxes will be kept at the existing level, without major changes.