Romania’s fiscal code will remain the same in 2009, economy minister ensures

Romania’s fiscal code will not be modified in 2009 as the state’s interest in collecting revenues coincides with that of the business environment, Economy and Finance Minister (MEF) Varujan Vosganian said.

The official noted MEF’s fiscal policy will further focus on fiscal relaxation and an increase in budget revenues. This is not a static vision, Vosganian noted, as the main taxes will not go up. The official referred to the Value Added Tax (VAT) and the tax on income, which will remain the same.

"By keeping the fundamental taxes unchanged and reducing other taxes we expect larger revenues to the budget. It might look like a paradox, yet we proved this thing is possible," the minister added.

The minister reminded the tax on dividends, paid by both residents and non-residents, will be of 10 percent. The decision came after the European Commission warned Romania of the discriminatory taxation of the investors abroad.

The International Monetary Fund (IMF) previously said Romania’s fiscal policy should be drafted on a long term and not from one day to another. IMF experts said estimates concerning this year’s budget revenues collections are exaggeratedly optimistic.

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