The absurd tax that increases by 1,350% overnight and causes a new anomaly in Romania. Expert in taxation: “I think they were wrong”
The government invents new taxes and taxes, and others increase from one day to another, causing confusion even among tax experts. Gabriel Biriș, a well -known economist and lawyer of tax law, reports a scandalous situation, which has led to huge tax increases.
The economy went crazy, and the hunger for money gives birth to bizarre decisions. Photo: Pexels
In the pursuit of money at any price, the Government of Romania resorts to hasty measures, often poorly thought out, hitting the citizen. In some cases, the taxes invented overnight are at the limit of legality or even conflict with older laws, as they sometimes create absurd situations, which shows that their initiators do not have elementary knowledge in economics and taxation.
Gabriel Biriș, economist and lawyer of fiscal law, widely recognized as one of the best fiscal specialists in Romania, reacts to the bizarre modification to such a law that automatically increases a certain fee, causing confusing. The expert made the rigorous calculations and says that from now on the tax difference due by a natural and legal person – on the same apartment, it will not be 200%, but 650%or even 1,350%. In a Facebook post, Gabriel Biriș signals the abnormal situation that appears because of this increased pen tax overnight.
A stupid decision
“I make a confession: I am confused! I explain below: the taxes on buildings with residential destination owned by individuals have increased, increasing from 1,492 lei/sqm to 2,677 lei/sqm (+79.4%, in reality less, that it increased with inflation). This is clear. 0.08 and 0.2%) for the residential buildings held by legal persons.”, Writes Biriș.
Gabriel Biriș. Photo: Facebook
That would mean, theoretically, that companies that own residential buildings would be taxed. In the middle it would be a huge mistake of those who drafted the law, without taking into account certain details.
“So, companies that have residential buildings no longer pay tax on buildings? That's how I read it! That's what the author wanted? I don't think so, this package is about tax increases, not about exemptions … I think they were wrong, that they wanted to unify the treatment of the buildings held by the legal persons ( 2.6%) and that they forgot to modify Alin (2), which now refers to non -residential.”, Says Biriș.
From now on, the tax difference due to a natural and legal person, for an identical apartment, will be huge.
“The tax difference due to a natural and legal person – on the same apartment, will not be 200%, but 650% or even 1,350% (now in Bucharest we have 0.2% for residential and 1.5% for non -residential – that is 7.5 times/750% more). residential ”!)? Who will pay the increase in at least 6.5 times the tax? The tenant! ”, conclude Biriș.
The heavy one falls on the citizens
Starting from here, in Romania, in the big cities, a new market has appeared, says Gabriel Biriș.
“Let's also say that as a result of the mini-reform of 2015, a new market appeared: investments in apartments for rent (either built to be rented or bought to be rented, including many student dormitories),” on the company “. Previously, this was not possible, the tax on buildings due to companies being simply too large (double rent). The apartments for rent were ultra-majority “per person” (obviously, preferably without contract)“He adds.
In the end, Gabriel Biriș calculates how much the tax for a studio in Bucharest will be in this case.
“Let's make a simple calculation, for a 30MP studio in Bucharest: taxable value: 2.667*2.6*30 = 208,000 lei. Tax PF 0.1%: 208 lei. PJ tax 1.5%: 3,120 lei (416 lei now). So, plus 2,700 lei/year, that is +225 lei/month (45 euros). That if not really wanted to eliminate the tax on buildings at companies, to stimulate the rental market ”, Gabriel Biriș concludes.
