Romania’s revenues from profit tax fell in Q1 on insolvency growth trend

Newsroom 10/04/2013 | 10:15

As more companies have filed for insolvency, the revenue generated from the profit tax has dropped in the first quarter, said PM Ponta, who added the government aims to change the insolvency law in the second quarter.

The PM said this fall was partially due to companies that simply didn’t have access to credit and were forced to enter in insolvency. However, he stressed that some companies file for insolvency in order to avoid paying taxes or their suppliers.

“They enter insolvency to gain an advantage. We need to change the insolvency law, so to help those that really enter insolvency for a brief period to avoid bankruptcy, and to sanction with bankruptcy those that fraudulently enter insolvency or not to pay their taxes,” said the PM on Tuesday. He didn’t put a figure on the revenues lost from the profit tax.

Meawnhile, he said the economy performed “good” in the first quarter.

The tax collection increased by 10 percent on VAT, excises and revenues, while the budget deficit remained in line with the IMF target, according to Ponta. He added that exports expanded by 8 percent, while the trade deficit reached a 10-year low.

Ovidiu Posirca

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