Payments between individuals will be limited to RON 10.000/day

Cash payments between individuals will be limited to RON 10.000 per day, and the ceiling for cash payments by companies for other companies or individuals will be lowered by half, from RON 10.000 to RON 5.000 per day, according to Daniel Chitoiu, minister of Public Finance, quoted by Agerpres.

At the present time there is no ceiling for cash payments between individuals. The Ministry wants to promote this measure by the end of February as part of a series of fiscal measures to discourage tax evasion and to improve budgetary collection.

Chitiou plans to introduce other measures like using cash registers with an electronic journal, changing the penalty system and simplifying the process of reimbursing VAT.

Tax evasion is fueled by cash transactions, and most commercial centers that supply goods receive payments which are 99% cash. The same situation applies for the bread industry, according to Chitoiu.

“An individual will no longer be able to go with a suitcase full of money to buy cars, terrains and houses”, the minister added.

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One of Chitoiu’s main objectives since coming to head the Ministry of Public Finances is to reduce tax evasion and to improve the fund-collecting for the public budget. Since 1989, budgetary revenue acocunts for 28 to 33% of the GDP, but in order to come close to the european average, this percentage should increase to 38-40%,