The original milestone will be substituted with a new one focusing on structural and legislative measures designed to strengthen the institutional capacity of the National Agency for Fiscal Administration (ANAF). 

This new focus will also involve improving legislation to better support tax authorities in taxpayer collection and administration efforts.

"The ANAF reform is moving forward, with an emphasis on concrete measures that will bring sustainable results in budget revenue collection and lead to the reduction of the VAT gap within a realistic timeframe. It is a gradual, but irreversible, process that will make ANAF a completely digital institution within the next two years, with an internal culture based on performance, not seniority. Romania needs a modern, predictable, and transparent tax administration,"  said Finance Minister Alexandru Nazare.

Romania currently faces a VAT collection gap of 36%, significantly higher than the EU average of 5.4%, according to an analysis by PwC.