Romania keeps 16 percent flat tax until 2013

The Romanian government plans to keep the flat tax rate unchanged at 16 percent at least until 2013, according to the country’s three-year fiscal strategy approved Wednesday. The document doesn't indicate whether the value added tax rate will be modified over the next three years. In July, the government raised the VAT to 24 percent from 19 percent to boost state revenues. According to the 2011-2013 fiscal strategy, Romania targets annual revenues from the flat tax rate of 3.3 percent to 3.4 percent of the gross domestic product. The tax on profit is estimated to bring the state up to 2.1 percent of GDP by 2013. The government also pledged to maintain lower VAT rates for a series of goods and services for the next three years and to keep the social security contributions at their current levels. Mediafax