Romania will keep its flat tax of 16 percent, even when tax levels of 8 and 12 percent are introduced for people with lower incomes, between 2012 and 2016 or until the EU imposes a unitary taxation level, said Romanian Prime Minister Victor Ponta.

He said that Romania and Bulgaria are currently involved in wholesale "fiscal dumping," compared to Germany, where a tax of 45 percent is applied in some cases.

His statement came after a recent, more ambiguous comment, which was misinterpreted by some of the Romanian media. The PM said the flat tax would have to be kept, but the fiscal revenues somehow raised; the media this as meaning that the flat tax would have to be raised.

editor@romania-insider.com