Regional Development by Increasing the Competitiveness and Combating the Tax Evasion

Abstract

Latest figures show that Romania is importing, more than it is exporting, chemicals, fuel and food, accounting for surplus (exports exceed imports) regarding raw materials and a near-zero balance (exports almost equal to imports) in the group "machinery and transport equipment”. Romania is also facing an unprecedentedly high level of tax evasion, while the Government has no strategy in order to reduce or eradicate it, but rather adopts laws to collect as much as possible from the good faith taxpayers without an adequate plan aimed to combat the high level of tax evasion.

Although is in full recession, the Government has not yet developed a proper plan aimed at restoring damages brought about by high tax evasion and providing incentives, thus contributing to the economic recovery.

Through this study, we aim to identify a series of actions, especially the ones from the fields of competition and innovation to cover expenses in conjunction with appropriate decisions to combat tax evasion and to allow the recovery of business, in our opinion, the only solution for a healthier economic environment in Romania.