EC: Romanian Tax Sys Most Burdensome

In its report on the Implementation of Lisbon Strategy Reforms in the member states, the Commission recommended Romania “to take rapid measures to substantially reduce red tape (excessive regulations –e.n.), in order to remove an important source of corruption, and improve the business environment”.

The document, whose assessment refers to the year 2008, says “in spite of several high-level political announcements and the adoption of a Better Regulation Strategy, the effective removal and simplification of procedures and authorizations has been further delayed”.

“Romania continues to operate one of the most burdensome tax administration systems in the world with companies paying 113 taxes per year”, the Commission warned. 

"While Romania’s commitment to reduce administrative burdens by 25% by 2012 is welcome, if determined action were taken this goal could be achieved much more quickly", the report said.

In the same chapter, “Microeconomic Policies”, the reports draws the attention to the fact that the implementation of the National Research and Development Strategy for 2007 – 2013 is underway, but many major challenges remain.

“In particular the foreseen increase in public R&D funding (to 1% of GDP by 2010) should go hand in hand with a reform of the R&D system and measures to address the key factors that constrain innovation,” the report said.

It also said “Romania should set up a comprehensive monitoring system, based on international standards, to measure results and make adjustments”.