Romanian PM Confirms Lower Taxes For Appeals To Public Contracts

Asked, Wednesday evening on public television, if he can confirm that the Government amended the tax imposed on companies challenging in court the auctions for public procurement contracts, Boc replied yes, adding the new legislation was established in accordance with the latest requests of the European Commission.

"At one point there was the risk for the European Union not to acknowledge Romanian public procurement legislation, not to acknowledge the auction, which would affect the sums spent for in investments in Romania, from European money. This is why we correlated these regulations, so that there would not be any problems and legislation would be transparent," Boc said.

Government sources told MEDIAFAX Wednesday that the Romanian Government adopted an emergency act reducing to less than half the taxes charged for companies that challenge in court auctions to assign public procurement contracts, after the European Commission noted the existing taxes prevent access to justice.

Under the act, companies and individuals who challenge auction results in court will pay a fixed tax (in the Romanian currency leu) based on the contract’s value, plus a percentage added to the amounts exceeding the minimum value limit.

The latest amendments to the public procurement law were operated in March, when the government introduced new rules for contract assignment and complaint settlement.

Romania’s public procurement law stipulates individuals or companies challenging bids in court have to pay a stamp tax of 2% of the contract’s value. The move aimed to limit the number of complaints, which often stall public projects.

The European Commission, however, showed the new stamp tax could block the free access to justice.

Following EC recommendations, the authorities in Bucharest developed a new calculation method for the tax charged for court appeals, with the fees ranging between 400 lei (EUR1-RON4.2325) for contracts up to RON40,000 inclusive and RON2,200 for contracts whose values exceed RON4 billion.

The new draft executive decision also stipulates that the National Council for Complaints Settlement will be subject to evaluation once a month instead of twice a month as current.

The committee in charge with evaluation procedures will also include MPs.

 

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