Drop in tax evasion could lower budget deficit by 2%

Such a drop can yield 2 percent more to gross domestic product (GDP). “The Ministry of Economy and Finance (MEF) asks that the Fiscal Guard clearly delimit high risk tax evasion areas, and to do this the Fiscal Guard must start with VAT and excise taxes, abandoning searches under the counters of large commercial complexes right outside Bucharest, such as the Europa complex. The Fiscal Guard should first check out constructions, the baked goods industry, food retail, cigarettes, and the alcohol trade,” Vosganian said.

MEF is attempting to implement the Spanish model, to allow monitoring of all transactions in real time, Vosganian explained. He added that MEF’s tax strategy will focus on increasing the health and research budgets to 6 and 1 percent of GDP, respectively.

The Fiscal Guard applied sanctions worth RON 272.98 million (€74.92 mln) last year.

According to food industry trade unions, tax evasion amounts to 40 percent.