The Romanian Prime Minister has confirmed that there will be no abrupt change in the government’s fiscal policies this year, rejecting speculation that an incremental income tax could be introduced.
The 16 per cent flat tax was introduced in 2005 to draw foreign investments and replaced the differential tax rates that rose progressively in five stages from 18 to 40 per cent. The government had previously hinted that the flat tax could be changed, but economic analysts said that any increase will have an adverse effect on investment.
The Prime Minister is however looking into introducing the new progressive tax as of 2015.
