Mediafax: Document reveals tax changes, flat tax elimination plan by Romania’s Government

Romania’s Government is considering giving up on the 16% flat tax, starting 2016, and introducing the progressive rates to tax individual revenues, which would be 15%, 25% and 35%, according to a working document which Mediafax newswire says belongs to the Finance Ministry. The document, which is dated October 20, contains nine measures which the Finance Ministry and the Budget Ministry may be analyzing, such as a lower VAT for bank or card payments, of 20%, compared to cash payments, 24%. Another proposal would be to eliminate tax on profits and, instead, introduce a tax on turnover. The tax on dividends would also be reduced to 5%. Local taxes on property would also be increased by 25%, in 2015, and another 25% in 2016, but the excise on fuel, which was introduced in 2014, would be eliminated. Government officials have denied the authenticity of this document. Finance Minister Ioana Petrescu said she’s against eliminating the flat tax and that no such scenario was made. Budget Minister Darius Valcov also firmly denied that he or the finance minister ever approved such a document. This news came just three days before the second round of the presidential elections, which will take place on November 16. Sibiu’s mayor, Klaus Iohannis, who is facing Prime Minister Victor Ponta, had previously declared that the Government plans to change the flat tax and increase taxes. Prime Minister Ponta denied any such intentions. editor@romania-insider.com