Romanian Government “Is Trying” Not To Increase Taxes

Romanian finance minister Sebastian Vladescu stated that several options are being negociated with the International Monetary Fund concerning the current taxation, but none corresponds to variants presented in the media. "As I have said, we are trying not to change taxes," Vladescu said.

 

 

Until now, the government hasn't proposed to the IMF mission an adjustment of the budget deficit target. "We are working with the 5.9% of the GDP (figure)," the minister said.

 

Before the beginning of the negociations on the fourth review of the stand-by agreement, the IMF revised Romania's economic growth forecast for this year from 1.3% to 0.8%. The minister said Monday that one of the variants discussed with the IMF delegation points to an economic contraction in 2010 as well, but a final forecast has yet to be decided.

 

Since the economic growth forecast could be reduced further, and the budget correction would be wider, there would be needed additional measures to reduce spending or to boost revenues. In this matter, liberal head Crin Antonescu said Monday the Government intends to eliminate the flat tax and introduce a 25% monthly tax on revenues higher than 4,000 lei (EUR1=RON4.1352), to increase the tax on profit to 25% and to double the value of local taxes.