Due to several technical issues relating to tax submission and payments, the Romanian Government will not yet implement a progressive income tax regime for individuals, Romania’s Finance Minister, Ioana Petrescu, has said. The current income tax in Romania is at the flat rate of 16% which was imposed in 2005. In 2012, the new Prime Minister Victor Ponta announced plans to reduce taxes by introducing two new tiers, of 8% and 12%, for lower wage earners.
In April 2014, Romanian Finance Minister suggested that reduction policy could be introduced from 2015 if the budget allowed for it. But she has now ensured that this will no longer be feasible.