The initiative of the deputies from the Alternative bloc was supposed to increase the thresholds currently in force up to 300 projected average monthly salaries for the economy. At present, this would amount to 4.83 million lei. The MPs also proposed not to require supporting documents on the origin of money in transactions between physical persons – citizens.
Today, the Law No. 34 on cash settlements sets a certain limit. According to it, the price indicated in the real estate sale and purchase agreement should not exceed the equivalent of 100 average monthly salaries forecasted for the economy or 1.61 million lei in 2026. And in case of a vehicle – 50 salaries or 805 thousand lei. At the same time, the payment must be made by bank transfer, except for the amount up to 200,000 lei, which can be paid in cash.
Arguments of the government
The government explains the refusal with several arguments. First, the increase of limits in the use of cash may reduce the effectiveness of mechanisms for detecting discrepancies between supposed and declared income.
Today, Article 226¹³ of the Tax Code regulates the concept of “minimum acceptable risk”, according to which differences of up to 100 projected average monthly salaries for the economy are considered insignificant from the point of view of tax control.
Secondly, the transparency and quality of financial information will decrease, the Cabinet of Ministers concluded.
In addition, cash settlements contribute to the understatement of income, non-payment of taxes and can create conditions for the growth of the shadow economy. At the same time, the current legal framework allows for differentiated assessment of transactions based on the identified risks. And reporting units apply precautionary measures to customers when money laundering is suspected, regardless of the established exemptions, exemptions or limits. In addition, the lack of access to data on the origin of the money may pose significant risks to them, given the responsibility assigned to them.
We shall remind you that last week, the government did not support a similar initiative of the deputies of the Alternative bloc, which provided for the abolition of the Law No. 34 on cash settlements.
