Are housewives grandmothers to blame for reduced budget receipts, as the head of ANAF says? What does the data say?
Elderly woman Photo: MediaPhotos / Alamy / Profimedia
The Head of the Tax Office stated that behind the low receipts from the value added tax (the lowest in the EU) there are statistical problems: the jam made at the grandmother's house is treated as if it were taxable, even though it is self-consumption. European norms, however, take into account the impact of households' self-consumption, so that it does not distort the data. Moreover, those who make the EU reports believe that behind Romania's bad numbers are other things: bad governance, mistrust of the authorities, backward digitization and reduced administrative capacity.
Romania is characterized by self-consumption, says Adrian Nica, the president of the National Tax Administration Agency. “And to give some clear examples: the way we treat the jam that grandma makes at home (…) Unfortunately, today, yes. Yes, it is calculated today at the VAT gap,” said Nica.
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