Romania Ctrl Bank Head: Tax System Hampered By Exemptions

Speaking at a financial forum in Bucharest, Isarescu said the authorities’ decision not to levy taxes on the land owned or to tax it insufficiently has contributed to the real estate boom in the recent period.

„In 2000, I recommended that land be taxed. I was told it wasn’t possible, because it was an election year,’ Isarescu said. „Not taxing land was one of the reasons for the real estate boom.”

The central bank’s chief said Romania’s tax system is inefficient and the untaxed areas amount to some 20%, even 25% of the gross domestic product.