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Subject
Romania’s failings in VAT collection.
Significance
Uncollected budget revenues in 2015 amounted to 7.7 billion euros (9.1 billion dollars), more than the current budget's allocation for education or healthcare. Despite robust economic performance and increases in other revenues, underlying weaknesses in the public administration are hampering the country’s ability to invest in and steer much-needed modernisation and development projects.
Impacts
The tax compliance burden on companies will remain high.
Weak tax collection will continue to impede the government’s ability to plan its spending.
Bureaucratic complexity and unpredictability will burden the management and delivery of large, publicly funded projects.
Keywords:
Romania,
EUR,
EU,
economy,
politics,
corporate,
fiscal,
government,
reform,
employment,
growth,
legislation,
policy,
regulation
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2017
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