PM Ilie Bolojan says property tax for individuals might increase by up to 70pct as of Jan 1

Prime Minister Ilie Bolojan on Sunday evening stated that, in certain localities, the property tax for individuals might increase even by up to 70%, in certain localities, where they have not been indexed for years.According to him, the existing data show taxes are not at a level that reflects the value of the property, the increase in taxes being included in the second package of austerity measures.Asked if taxes could increase by 70%, Ilie Bolojan replied that this is possible, in localities where they have not been indexed for years."The general statement is not so, but it is possible that where, in a rural town, for instance, taxes have not been indexed for years, such an increase will be reached exclusively for individuals. Because, for legal entities, the calculations are made according to other formulas that take into account the value of the respective asset. But it is possible that, in certain situations, this will also happen. So, an increase in property taxes for individuals, due to the fact that they were not calculated according to market value, is possible from January 1 next year," Bolojan said on Antena 3.The prime minister mentioned that these adjustments are taken into account in the context of the budgetary crisis that Romania is going through.Regarding the destination of the funds obtained from the tax increases, Bolojan specified that they will be collected by local authorities, representing additional income for their budgets."This money (from the tax increase - editor's note) will be collected by the administrative units in Romania, basically as an additional income for them. In the same proportion, or less, this will be decided in autumn this year, because these taxes will be paid next year, the the state would have to direct fewer funds for balancing to local authorities. And so, even if they go directly to the local budgets, the balancing amounts that the government periodically transfers to local authorities will be smaller. To what extent, this remains to be seen, because there are certain expenses," explained the Romanian prime minister.