Romania's Govt. prepares new measures to increase budget revenues

The excise duty on cigarettes could increase by 1% whereas the child raising allowance could be capped. The Government also plans to increase the contributions paid by employers for part-time employees with salaries below the gross minimum wage of RON 1,450. These are some of the measures prepared by the Government to increase the budget revenues, according to a document approved on Friday and analyzed by Profit.ro. Increasing the excise duty on cigarettes could bring an additional amount of RON 90 million (EUR 19.7 million) to the state budget this year. State-owned companies will need to distribute minimum 90% of their net profits as dividends in 2018. The impact of this measure is estimated at RON 870 million (EUR 191.3 million) in 2018. The Government also wants to take measures to reduce public spending, with an estimated impact of RON 1 billion (EUR 220 million) in 2017 and RON 3 billion (EUR 660 million) in 2018. It plans to set up an institution within the General Secretariat of the Government until June 1 that will aim to reduce the number of agencies and institutions subordinated to the Government. The Government has also proposed capping the child raising allowance to maximum RON 5,000-10,000 (EUR 1,100-EUR 2,200). editor@romania-insider.com