It notes that the abolition of the minimum rate may lead to uneven application of tax policy on the ground and adversely affect the revenues of local budgets.
And retention of regulated rates is necessary to maintain a balance between financial autonomy of local authorities and avoiding excessive differences between administrative-territorial units.
At the same time, it is emphasized that the Ministry of Finance is preparing changes to the property tax and local taxes. And will soon present them within the framework of the tax policy-2027.
Thus, local authorities may be authorized to establish tax exemptions for individuals instead of introducing a general equalization rule.
Therefore, promoting a legislative initiative concerning only the abolition of the minimum rate without integrating it into the overall reform of the tax law is inappropriate.
The drastic impact of housing revaluation
As a reminder, members of the Alternativa parliamentary faction, former Prime Minister Ion Kiku and Liliana Iaconi, proposed to abolish the minimum property tax rate set for apartments, residential houses, garages and adjacent land plots. The project was registered almost immediately after the revaluation of housing.
As previously reported by Logos Press, the deputies noted that the current regulatory framework clearly defines the powers of central and local authorities in this area. Although the tax rates are set annually by the local authority, its powers are limited. Article 280 of the TC establishes a minimum limit, below which the rate cannot be lowered.
At the same time, cadastral values have increased significantly as a result of the recent revaluation. This will put pressure on family budgets. Abolishing the minimum will reduce the impact of this increase on the tax rate and give local authorities the opportunity to mitigate the impact of periodic revaluation of real estate on its owners.”
