Head of Liberal Party: Govt. is working on flat tax and local taxes increase

The idea of an increase in the flat tax and in income taxes, brought up in the media by the head of the National Liberal Party(PNL) Crin Antonescu (in picture), has already triggered fears among companies and employees alike. According to Antonescu, the Romanian Government is planning to increase the flat tax from 16 to 25 percent for revenues higher than RON 4,000 (almost EUR 1,000). It also plans to increase the profit tax to 25 percent and double local taxes, said Antonescu. He says PNL received a draft document from the Finance Ministry with these changes, which also includes the idea of paying these taxes during 2010. Antonescu also says Romania's economy is bankrupt. While some say it would make sense for the Government to ask for such increases considering it is trying to raise more money to the budget, other are just labeling this only as a political quarrel. PNL intends to ask for a vote of non-confidence for the government headed by Emil Boc.