OREANDA-NEWS. January 30, 2014. The Constitutional Court today described the legislative provisions on capping the local taxes as non-constitutional.

The decision was issued after a notification submitted by Liberal MPs had been considered. The court noted that the parliament had adopted the contested provisions without government’s acceptance and without consulting local entities.

“Taking into account the way of the contested amendments were adopted, without providing a reasonable period for enforcement and without subsidising the local public authorities from the state budget to compensate the lost revenues, the local budgets have been torpedoed, with the local autonomy principle thus being violated”, the court’s decision says.

Capping of local taxes was provided for in the budgetary and fiscal policy for 2014. Earlier, more representatives of the local authorities have asked for repealing the provisions on capping of taxes, as they would affect the budgets approved by the local authorities.

The Constitutional Court’s decision is final and cannot be subject to any appeals. It enters into force upon its adoption and is published in the Official Paper (Monitorul Oficial).