Chitoiu: Exempting reinvested profit from taxation, possible starting July

Deputy PM Daniel Chitoiu, minister of Finance, said yesterday that the measure of exempting reinvested profit from taxation can be enforced as of July, along with diminishing the CAS, if it will not negatively impact the budget and after talks on this topic in USL and with the IMF, Mediafax reports. He added that one cannot tell now how it will be enforced, or if it will be enacted starting a certain date in 2014. “But we consider it, we discuss it,” he added. On the other hand, he explained that the 5 pc reduction of social contributions represents a political commitment also stipulated in the letter of intent with the IMF and which will be certainly enforced as of July 1, 2014. “Delaying with three months the increase of the excise duty by 0.7 eurocents, the budgetary impact estimated at 600 M will be recovered – we intend – from improving the collection of incomes and from a bigger income generated by special construction,” Chitoiu explained. He added that Romania’s budget is conceived so that to new tax is enforced. On the other hand, PNL president Crin Antonescu said that he knows from PM Victor Ponta that he is not hostile to the idea of tax-exempting the reinvested profit and Ponta would gladly enforce such a measure.

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