Nov 20, 2018

Gap deficit VAT collection

Ionut Dumitru: If we could collect VAT as in Bulgaria, we could build a long motorway, Comarnic-Braşov, every year

Romania is with public investments at the level it was before joining the European Union, and last year reached 2.6% of GDP, said Ionut Dumitru, the president of the Fiscal Council, at a conference organized by the Association of Financial Analysts- Banks in Romania.

"As if we did not have European funds allocated and we would have very little public investment, it is obvious that it cannot be sustainable." The public investment is already below the European average, last year it had 2.6% of GDP and the European average is 2 , 7%, Hungary is in the top of the list with 4.5% of GDP, they have reached the highway with us and have nothing to connect because we do not have ", Dumitru said.

According to him, tax revenues are at historical minimum

"We have 25.8% of GDP, we have never had less, the European average is 40% of GDP. There is no comparison with the EU, although at the level of pay as a percentage of GDP we are above average while income is……….. The VAT collection deficit is very high, at 35.9% of GDP, the highest in Europe", the Fiscal Council chairman said.
In Bulgaria there is a VAT collection deficit of only 13.56%, he says, we have 36%.
"If we had a collection rate like Bulgaria, we would have an extra budget revenue of 3.8 billion euros, that is, a big motorway every year. It is something colossal as the impact dimension. Could build a long motorway, Comarnic-Braşov, every year”, Dumitru explained.