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Romania Ups Local Taxes, Fees By 20% In 2010 In Ratio With Last Three Yrs’ Inflation Rate

The Romanian Government decided to increase local taxes and fees by some 20%, as of 2010, in ratio with the inflation rate over the past three years.
Romania Ups Local Taxes, Fees By 20% In 2010 In Ratio With Last Three Yrs’ Inflation Rate
25 sept. 2009, 11:22, English

The government’s decision was approved in August this year and published in the Official Journal of Romania on September 24.

Taxes for buildings made of strong construction materials, such as concrete and bricks, and connected to utilities will increase to 806 lei (EUR1=RON4.2132) per square meter, from the current RON669, while taxes for the same type of buildings that are not connected to utilities will increase to RON478 per square meter, from the current RON397.

Local authorities calculate taxes on buildings and taxpayers will pay 0.1% of law-regulated taxes. However, local authorities can increase the level of taxes by up to 20%.

Taxes for land plots inside town, meant for further construction works, will increase to RON8,921 per hectare annually, from the current RON7,404.

Taxes on means of transport will also increase in ratio with the cylinder engine of the respective car, motorcycle or utility vehicle, while taxes on water vessels for sports and recreation will increase up to RON964, from the current maximum of RON800.

Taxes and fees charged by local administrations for various services, as well as for the release of licenses and certificates, will also increase. Thus, the fee for the release of an urbanism certificate, for a land plot of up to 150 square meters, will range from RON4 to RON5, from the current RON3 or RON4.

Under the country’s Fiscal Code, local taxes and fees are increased once every three years, depending on the evolution of inflation from the latest modification. The new level of taxes and fees are valid until April 30 every year.

People close to the matter told MEDIAFAX in August this year that local administrations will update the level of local taxes and fees levied in 2010 in ratio with the inflation rate in the interval 2007-2009, which will trigger a nearly 20% hike in local taxes and generate extra revenues of over EUR970 million.