The Role of Local Taxes and Duties in the Romanian Economy and the Importance of their Collection to the Local Budget

Abstract

This work aims at highlighting the impact on the population from the perspective of the increase of local taxes and fees related to residential buildings by up to 50% depending on the notary grid that will take place at the beginning of 2025, compared to the last three years. Thus, Government Ordinance No. 16 of July 15, 2022, was adopted to amend and supplement Law no. 227/2015 regarding the Fiscal Code, the repeal of some normative acts and other financial-fiscal measures that provide for the elimination of all texts previously adopted by the Senate, specifying that starting with the year 2025 all taxes/fees on residential buildings will be calculated based on notary grids, the goal being that of increasing it by up to 50% by increasing revenues compared to the general consolidated budget. The objectives of fiscal policies in the field of taxes and local taxes regarding the review of the property taxation system contribute to the promotion and preservation of sustainable economic growth, by simplifying the taxation system to be more efficient, transparent, and fair, resulting in the gradual reduction of fiscal facilities in the field of property taxation. Local budgets have an important role within the consolidated general budgets, as they occupy a stable position, which the states try to keep balanced, regardless of the periods crossed. Local taxes and fees are individualized by the fact that the local public administration authorities have powers in setting, calculating, and collecting them.