Marcel Ciolacu: "Our economy is not yet ready to function with less cash"

The national economy is not ready to function with less cash, Prime Minister Marcel Ciolacu said yesterday, at the beginning of the government meeting in which it was established that the maximum limits on daily cash payments/receipts established by law 296/2023 will not be applied, so as planned, from November 11.

Marcel Ciolacu declared: "As we promised, today we are also revising the emergency ordinance regarding cash collection and payment operations. All current cash limits will be maintained for both individuals and legal entities, with two exceptions: the cash limit for companies will be a maximum of 50,000 lei, and the advance for settlement will be 1,000 lei per day. Even if the stated principles were correct, in real life difficult situations occurred. I spoke with the representatives of the banking system, as well as with the small traders in the markets, with the big entrepreneurs, but also with the families who have micro-enterprises. The unanimous conclusion is that our economy is not yet ready to operate on less cash, especially in rural areas where ATMs are rare and the world uses more cash. Equally, however, I want to eliminate all the loopholes through which tax evasion is done in Romania. Without money, we cannot have a strong pension system, health care system, a performing education system and highways, as we want. That is why we will use the most modern technology to identify those who do not pay their taxes and defraud the budgets with huge amounts. I also met the other day and I also recommend the leadership of the Ministry of Finance to have a meeting with the leadership of a Romanian company that has become a world leader in software automation. And the purpose of this meeting was only one: to transform the Treasury into an effective digital unit capable of discovering any illegitimate amount of money".

We remind you that, according to law 296/2023 on the new tax changes, from Saturday, November 11, cash payments to companies and individuals were to be limited. Payments between legal entities were limited to a daily ceiling of 1,000 lei/person, but no more than 2,000 lei/day. Regarding the receipts and payments between a legal entity and a natural person, the daily ceiling was set at 5,000 lei to/from a person, and the cash amounts in the cash register of legal entities were not supposed to exceed the ceiling of 50,000 lei, at the end one day Cash receipts and cash payments between two individuals were limited to a daily ceiling of 10,000 lei.

Following the Government's decision yesterday, the above ceilings will no longer be introduced. Moreover, the head of the Government requested from Marcel Boloş, the Minister of Finance, a concrete plan for the digitization of ANAF and for the realization of the infrastructure regarding the implementation of other fiscal measures provided for by law 296/2023.

Prime Minister Marcel Ciolacu said: "Certainly in 2024 there will be no increase in taxes in Romania. Moreover, we all know, in payment request number four (ed. - from PNRR) a fiscal reform is needed. But until the tax reform, I am waiting from the Minister of Finance for a plan of administrative measures taken both in terms of collection to the state budget, as well as the concrete plan, also foreseen, in terms of the digitization of ANAF and the system customs I want to know clear deadlines for the implementation of the e-Invoicing system, electronic seal, together with the goods radar, electronic invoices for all purchases in the public system, electronic invoices for all excisable products or with a high risk of evasion. Which we all know, are ballast products, flowers, fruits and vegetables and an administrative and a legislative action plan. I assume that the legislative one means to be presented with everything with opinions from our colleagues in the government".