Commission Report 2002 (Romania)

Chapter 10: Taxation

Romanian law has been brought closer to the acquis in the areas of VAT legislation and excise duties although further extensive adjustments are still needed. Romania still has to ensure that existing and future legislation complies with the principles of the Code of Conduct for Business Taxation. As mentioned in the Action Plan, major initiatives have been launched to modernise the tax administration and improve the revenue collection system. The Action Plan also provides details of a programme, that has now been completed, to develop the norms and procedures necessary for the organisation and administration of the Taxpayer Registry. A Tax Administration Strategy was approved in February 2002. The Action Plan is also the basis for an on-going national programme for the improvement of revenue collection, and a programme to improve the form and the content of tax returns and to simplify the declaration procedures is due to be completed at the end of the third quarter of 2002. Work to develop a Code of Ethics by mid-2003 is continuing according to schedule. Initial and continuous training is provided at the School of Public Finance and curricula have been developed which cover the majority of the activities of the tax administration. Romania will need several years before it can develop IT systems for the exchange of electronic data and be in a position to meet the obligations of EU membership. Romania is therefore somewhat behind in this area. Overall, the Accession Partnership priorities in the area of taxation have been partially met. Implementation of the measures under the Action Plan is largely on track.