Fiscal Council: Drop in social security, possible if income taxation on different revenues eliminated

The planned drop in the social security (CAS) by 5 percentage points will lead to major setbacks in the fiscal and budget policy in 2015, without any measures to compensate its financial impact, according to the Fiscal Council. Despite being desirable for the business environment, as it reduces the fiscal burden on labour, the drop in the CAS can only be achieved without any impact on the budget if the difference in fiscal treatment between different types of income is also eliminated, the Council has said. Romania’s Senate approves social security tax cut from October, but deputies have final say editor@romania-insider.com