The justification of Prime Minister Bolojan to increase housing tax: “It is logical to contribute with a greater amount”

The increase of the tax on housing is justified by the fact that the investments made by the mayors in the development of the localities, such as sewerage, thermal rehabilitation, have made the value of the housing, so that the owners should contribute more to the future projects of the local administrations.

“Through government programs, important amounts have been allocated for the development of localities in our country. Also, through European funds roads have been paved, water and sewerage networks have been expanded, the apartments from blocks have been insulated. Given that these things must be continued to raise the infrastructure conditions throughout Romania,” they can not be assured, ” 1.

Larger contributions of town halls

Thus, the town halls will have to contribute more to similar projects, including the money they collect from property taxes.

“Given that, for example, you stayed on an unpaved street that was paved last year, you live in a block that rehabilitated from European funds, you did not have sewerage, you connect to the sewerage, you make a ring road that earns 5 minutes every day means that the value of your property, the area where you live, is more accessible. money for local budgets so that these investment projects can be continued, ”Bolojan said at Antena 1.

The head of the executive showed that, for years, local taxes have not been modified according to the inflation rate, but these funds are necessary for the co-financing of investments in the future, given that the Government no longer allows to allocate the funds at the current level.

For now, the increase of taxes will not be done at the level of the market value of the buildings because the mayors still do not have the software system that will allow them to establish an approximate market value of the buildings in the localities.

“This will be done in an approximate year, and today what the government proposes with the local authorities is to make some changes to the current tax system so that it can be applied simply,” said Ilie Bolojan.

Increase announced by Deputy Prime Minister Tanczos Barna

The executive intends to increase housing taxes by 60-70%, locally, said Deputy Prime Minister Tanczos Barna, the measure to be included in the second pack of tax reforms to be adopted soon by the Bolojan Government.

“Currently, we are talking about a percentage of 60-70%. It is a discussion that Romania carries with the European Commission. The analyzes of the European Commission, but also the Ministry of Finance show that many communes do not periodically increase taxes, as they should. Deputy Prime Minister at Digi24.

Tanczos Barna said that this increase “is necessary” for strengthening local budgets, “for the mayors to become financially independent and to provide the resources for development projects”.

Thus, the deputy prime minister argued that “there are many projects from the center” for the development of the rural area, but “many times, the own contribution has been insignificant or is not large enough.”