Mayor of Craiova: Property taxes cannot be calculated at market value from 2027

Lia Olguța Vasilescu, the Mayor of Craiova, stated on Antena 3 CNN that local taxes and duties will not be able to be calculated at market value from 1 January 2027, as had previously been anticipated.

The mayor explained that, in order for the new calculation method to be applied, the E-proprietate application — a milestone committed to under the PNRR, with an implementation deadline of 1 January 2027 — would first need to be completed. According to Olguța Vasilescu, even if this application were ready on time, it still could not be used to calculate the new taxes for 2027, as these must already be approved by local councils by the end of 2026. The mayor noted that numerous localities across Romania have already put next year's rates out for public consultation.

"To start with the conclusion: taxes cannot be increased by calculating them at market value in 2027. [...] For the new taxes to be calculated, the E-proprietate application, through which they can be calculated, would need to be ready. The application is a PNRR milestone — so it is not something invented by the current government — and has an implementation deadline of 1 January 2027. Even if it were ready in 2027, it still could not assist with calculating the new taxes, because these must already be approved by local councils by the end of 2026. A great many localities in Romania have already put the 2027 rates out for public consultation," Olguța Vasilescu explained in her interview with Antena 3 CNN.

The legal framework exists, but can no longer be applied in time

The Mayor of Craiova emphasised that, whilst the legislation required for this new tax calculation method already exists, it is too late for it to be implemented from next year.

"So, to return to my conclusion: the legal framework existed before the Niculescu government took office — it is simply impossible to apply it in 2027," Olguța Vasilescu added.

Accusations over PNRR negotiations

Olguța Vasilescu accused the Bolojan Government of having negotiated the PNRR conditions poorly with European officials, and not only with regard to local taxes.

"Unfortunately, the negotiations were handled poorly. The PNRR was poorly negotiated — and not just on this issue, but in a great many areas. Remember how they had set pensions at 9.4% of GDP, so that they could no longer be adjusted for inflation for at least 50 years. Remember that these negotiations on taxes were conducted last year — towards the end of last year, I believe. These are commitments that Romania took on under governments that probably did not consider that we would end up paying far more than is warranted," the mayor stated.

The Mayor of Craiova added that she was basing her claims in part on statements made by Finance Minister Alexandru Nazare during his parliamentary hearings, in which he indicated that the new tax and duty calculation formula would not be applied from 1 January 2027.

"I will tell you what I am basing this on. First and foremost, on Minister Nazare's statement at his parliamentary hearings, where he said it would not be applied in 2027," the Mayor of Craiova further declared.