Romania's Govt. promises strategy to help capital market

The Romanian Government will draft and pass a strategy for developing the capital market as soon as possible, announced prime minister Florin Citu in the opening of an online conference organized by Profit.ro.

PM Citu argued in favor of cutting the taxation of capital gains, while Bucharest Stock Exchange (BVB) officials proposed a simplified taxation procedure to encourage individual investors.

Asked if the promised strategy could include reducing from 10% to 1% the tax on earnings from stock exchange transactions, prime minister Citu said "he does not see a problem here if this helps channel more individual investors to the capital market."

He also pointed out that an important part of the strategy will also concern the sector of state financial institutions, especially since the Development Bank of Romania is to be operationalized. He implied that state financial institutions should be capitalized by tapping the capital market.

In the same sense of encouraging individual investors to join the market, Adrian Tanase, general manager of the Bucharest Stock Exchange (BVB), said that he supports a withholding tax system for capital gains to increase the population's participation in the capital market.

(Photo source: Facebook/Guvernul Romaniei)