Romania: Selected Issues
IMF Staff Country Reports, June 6, 2018
Source details
- Canonical URL
- Romania: Selected Issues
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Bibliographic details
- Published: June 6, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484359563.002
Executive summary and key findings
- The paper reviews the level and structure of tax revenues in Romania and proposes options to improve revenue mobilization drawing from other countries’ experiences.
- Tax revenue in Romania is low compared with peers and has been declining over time.
- Strengthening the tax administration is crucial to improving tax collection efficiency in Romania, and requires commitment and ownership at the highest levels.
- Implementing and operationalizing new information technology infrastructure in Romania is a key priority, given its outdated and fragile systems.
- Romania should conduct a comprehensive review of its tax system to guide future reform needs with the primary focus on improving revenue productivity and the growth-friendliness of the tax system.
Substantive analysis themes
- Revenue performance assessment
- Low tax revenue relative to peer countries.
- Declining revenue trend over time.
- Tax administration and efficiency
- Need to strengthen tax administration core functions to improve collection efficiency.
- Commitment and ownership at the highest levels of government are necessary for reform success.
- Information technology and operational capacity
- Current IT systems described as outdated and fragile.
- Implementing and operationalizing new information technology infrastructure is identified as a key priority.
- Tax policy review and reform priorities
- A comprehensive review of the tax system is recommended.
- The review should prioritize improving revenue productivity and the growth-friendliness of the tax system.
Policy recommendations and reform priorities
- Strengthen tax administration through institutional reforms and stronger governance, with high-level commitment and ownership.
- Prioritize implementation and operationalization of modern information technology infrastructure for tax administration.
- Conduct a comprehensive, systematic review of tax policy to identify reforms that raise revenue productivity and enhance growth-friendliness.
- Draw on international practices and country experiences to design revenue mobilization measures.
Content in this bundle
- Country Report