Internal conflict between ministries regarding law for legalization of new buildings

06/01/2017 00:00

The Ministry of Urban Development has initiated a draft-decision for
legalizing apartment buildings that have violated the construction
permit, with the purpose to accelerate the legalization process and make
it easier for citizens who own apartments, but the Ministry of Justice
says that this law damages competences of the local government,
encourages tax evasion and brings a fiscal paradox if taxes are lowered
for those who break the law.

Local taxes specify that the infrastructure tax for every new construction should be 8% of the object’s value and it should be paid at the municipality, but if the object is undergoing a legalization process, the tax will be only 0.5%. The Ministry of justice says that by moving the legalization rights to the Inspectorate for Legalization of Urban Constructions (ALUIZNI), the tax will automatically be reduced 16 fold, giving  away millions of Euros in taxes to the builders, and creating a paradox for honest builders, who have paid 8%, while illegal ones will pay 0.5%.

The Ministry of Justice asks that the right to legalize buildings should still belong to municipalities, and ALUIZNI should legalize private homes built illegally by citizens. The Ministry of Justice says that this is the only way to accelerate the legalization procedure, to increase security for constructions, to close chances for tax evasion, and for discouraging new illegal constructions.

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