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additional revenue. Review of the Tax By Q1-2025: Framework Implementing a tax reform that contributes to fiscal consolidation and promotes better Step 1: Preparation of a Report, Step 1: Report by the [Adding to RRP economic incentives. The budgetary impact building on the World Bank report authorities milestones and of the reform in 2025 should be at least 1.1% on taxation (prepared under RRP targets of GDP, net of the impact of raising the non- milestone 205) establishing two C8.R4.0.M207, taxable threshold for pension income (0.2% scenarios for the tax reform, with C8.R4.0.M208, of GDP). The new measures therefore have a fully specified measures. Measures C8.I7.0.M237] total impact of 1.3% of GDP in 2025. Since should cover all areas of taxation measures will be implemented by the end of and social contributions. Q1-2025, the full-year permanent impact of the new measures should be 1.7% of GDP. Step 2: Government adoption of a Step 2: Adoption of a memorandum including specific tax memorandum by the Operationalising the information system for measures based on the above- government, in line assessing properties subject to property taxes, mentioned report. Measures should with the main with the following characteristics: be in line with milestones 207, 208, objectives of the and 237 of the RRP, and objective 1 reform, • Interoperability of databases of the tax reform. containing information about properties held by various Step 3: Step 3: Government organises a public Public debate with the institutions. debate on the amendments to the private sector. • Operationalisation of a dedicated Fiscal Code. department within the Ministry of Finance. Step 4: Implementation and entry Step 4: Entry into force • Creation of a Property Sales Price into force of the measures on 1 of the measures in line Registry for residential properties, April 2025 at the latest. with Objective 1 of the reform. development of a mass valuation By Q4-2025: model for residential properties. • Establishment of a mechanism for Step 5: As referenced in milestone Step 5: Report by the determining the taxable value of 237 of the RRP, developing an IT authorities. real estate using market value system to implement the automated assessment mechanisms. property assessment model for real estate taxation, supporting the new market value-based approach, and operationalising a specialized department with responsibilities in the field of property taxation. Tax The main objective is to improve tax By Q1-2025 (Q4-2026 for APIC): Administration administration and generate additional Reform government revenue amounting to at least Step 1: 0.5% of GDP in 2026. Implementation of an early Steps 1-7: Reports by [Adding to RRP detection mechanism for VAT fraud the authorities. milestones and In particular, the reform aims to: associated with intra-community targets purchases, transits, and domestic C8.I2.0.M225 Enhance ANAF’s Anti-Fraud Unit with a transactions. C8.I2.0.M226 real-time monitoring tool for detecting high- EN 19 EN  C8.I2.0 M226a risk taxable purchases related to intra- By Q2-2025: The revenue to GDP C8.I3.0 M227] community, transit, and domestic ratio should increase by transactions. Step 2: Implementation of anti- at least 0.5% of GDP in fraud modules for analysing and 2026 relative to 2024, Implement analytical tools and a dedicated identifying transactions suspected net of the impact of anti-fraud module to address and analyse the of carousel fraud (CARUSEL, new measures VAT gap. Increase capacity to detect INDFISC, TRANSPRISC, influencing tax bases irregularities within systems such as e- COMRISC, and RORISC). and tax rates taken in Invoice, SAF-T, e-AMEF, e-DU, e-VAT, 2025 and 2026. This DAC-7, and CESOP. By Q2-2025: will be assessed in April 2027 based on Expand the "Predictive Analysis" program to Step 3: Completion of 7 national accounts. cover a broader range of taxpayers, enhancing digitalisation projects, including e- tax inspection efficiency for VAT and Invoice, SAF-T, e-AMEF, e-DU, e- corporate income tax. VAT, DAC-7, and CESOP. Establish a taxpayer risk-ranking system and By Q1-2025: develop an IT tool to manage and analyse large volumes of data for determining Step 4: Strengthen oversight of the taxpayer risk categories. tax planning mechanism for large taxpayers and the extension of this Modernise and ensure interoperability of mechanism to medium-sized taxpayer administration systems with those of taxpayers after the implementation other state institutions to improve tax of APIC. information management and real-time asset and transaction access. Redesign the By Q4-2025: information system to reduce delays in audits and tax inspections. Step 5: Integrating and consolidating internal databases; Amend insolvency legislation to gain better developing a new system based on control over companies declaring insolvency the 360-degree profiling concept of and reduce the VAT gap. taxpayers; ensuring interoperability with the information systems of Implement an automatic payment mechanism state institutions. to increase voluntary compliance and introduce flexible mechanisms for the sale of By Q4-2026: movable goods through retail centres. Step 6: Implementation of a Establish a specialised department to conduct modern collection mechanism that risk analyses using models, operationalize provides taxpayers with the option anti-fraud modules, quantify the VAT gap, to choose recurring payment of and strengthen ANAF’s anti-evasion declared tax liabilities. capacity. By Q4-2025: Step 7: Establishment and operationalisation of a specialised structure comprised of experts in IT, econometrics, and financial analysis to quantification risks and tax gaps. Restructuring the Create a database on average costs of By Q4-2025: Public Spending purchases and establish a control mechanism System / Spending to monitor and address unjustified Step 1: Create a database and Step 1: Report by the reviews expenditure increases. This database also establish a control mechanism for authorities serves to centralise procurement of specific increases exceeding 20% compared [Adding to RRP goods and services, reducing costs and to the average costs of public Step 2: Publication of milestones introducing spending norms for public institutions. two spending reviews C8.R3.M202, institutions. per year on specific C8.I5.0.M234, Every year covered by the plan sectors or activities. C13.R5.0.M392, Conduct public expenditure reviews annually, (2025-2031): Reviews include and setting mandatory savings targets and mandatory savings C14.R1.0.T403] identifying measures to achieve them, in line Step 2: Conduct yearly thematic targets. with the spending reviews strategy timeline. expenditure reviews and apply conclusions and recommendations Enhance the efficiency of public spending on in the budget planning process, in standardised goods and services within the line with the established annual EN 20 EN  central public administration. In the schedule. healthcare system, implement centralised procurement of medical devices and Gradually, from Q4-2024 to Q2- consumables for the emergency system. 2030: Update and modernise the IT system used to Step 3: Expand the categories of Step 3: Report by the develop and manage the national budget to goods and services that will be authorities, achieve better management of budgetary data, procured centrally, focusing on demonstrating the increased budgetary transparency, improved priority sectors with high increase the share of monitoring and reporting. Additionally, expenditure levels. Increase the procurement increase the number of specialised staff share of procurement procedures procedures awarded by involved in spending reviews. Review the awarded by ONAC, relative to all ONAC. legal framework to strengthen responsibilities procurement procedures awarded of the Ministry of Finance and central and by all contracting authorities in local public authorities to monitor the Romania, by an average of 0.25% implementation of spending reviews. per year over the next seven years. By Q4-2025: Step 4: Operationalise the Step 4: Report by the specialised structure within the authorities Ministry of Finance to monitor public expenditure systems using performance indicators and participate in specialised training courses organised with the support of the World Bank. By Q4-2025: Step 5: Establish a legal framework for implementing performance Step 5: Entry into force indicators at the level of central and of the normative act by local public authorities. Q4-2025. Business Strengthen the administrative capacity of the By Q2-2026: Entry into force of the Financing Reform Ministry of Investments and European law operationalising (new measure) Projects to allocate funds to support SMEs in Reform of the Institutional the fund, along with the form of private equity, to foster long-term Framework for Allocating Funds to specific legislation on economic development, attract investors, and Support the Business Environment - grants, tax credits, and create jobs. Private Equity Investment Fund for investment credits for SME Support. the manufacturing industry. Reform of the Conducting diagnostic analyses of economic By Q3-2025: Expenditure operators aimed at: System for state- • Reducing losses and overdue Step 1: Conducting a diagnostic Step 1: owned enterprises payments. analysis of the operational Report by the (new measure) • Updating fees charged for services expenditure system, the revenue authorities. performed and reducing operational system, and the mechanisms for expenses, leading to a decrease in updating fees, as well as the subsidy subsidies/transfers from the state system for economic operators. budget, an increase in net profits, and an increase in state budget By Q4-2025: revenues. • Identify non-productive/non- Step 2: Establishing the regulatory functional assets, proposing framework to enhance the Step 2: measures for their use and/or operational expenditure system, disposal. improve the management of public Entry into force of the • Introducing expenditure rules, assets, introduce expenditure rules, regulatory framework. especially for categories of expenses and reduce dependence on the not directly re