Flat tax

A joint IMF and European Commission delegation held its first talks with Bucharest officials on Tuesday over Romania's proposal to change the fiscal code and boost disposable income and get people spending more.

The discussions, due to end on May 26, will focus also on the need for a new deal with the international lenders.

The Radical Left Coalition (SYRIZA) may have pledged social change but hundreds of large tax evaders continue to dodge the system as though nothing has changed.

The new property tax that will replace the existing Single Property Tax (ENFIA) will likely have a very low tax-free threshold of between 20,000 and 30,000 euros, according to the Finance Ministry’s latest plans.

Romania's fiscal watchdog, the Consiliul Fiscal - Fiscal Council - has echoed concerns over government plans to start reducing Value Added Tax and income tax as a way to boost disposable income and get people to spend more.

The Government on Wednesday passed a new Tax Code and a Code of Tax Procedure.

Romania aims to exceed, in 10 to 12 years at the most, the average GDP per capita in the EU, and by 2019 authorities want the country to benefit from the most relaxed tax policy in the EU, Finance Minister Darius Valcov told a specialist conference on Thursday.

Photo credit: (c) Liviu SOVA / AGERPRES PHOTO

The flat tax rate will go down from 16 percent to 14 percent as of January 1, 2019, Minister of Public Finances Darius Valcov announced at the government meeting for the presentation of the draft amendments to the Tax Code and the Tax Procedure Code.

Photo credit: (c) LIVIU SOVA / AGERPRES FLOW

Bulgaria will keep its flat tax rate of 10%, Parliament has decided, rejecting motions to re-introduce progressive taxation.

Prime Minister Victor Ponta says the 2015-2016 state budget aims at keeping the 16 percent flat tax and cutting the special constructions tax on energy infrastructure from 1.5 percent to 1 percent.

Prime Minister Victor Ponta on Tuesday said that until the elections of 2016 Romania would maintain the 16 per cent flat tax and, after which the political forces that will win the next parliamentary elections would be able to decide whether they maintain this flat tax or not.