Gov’t approves IMF letter


In Wednesday’s session, the Government approved the letter of intent agreed-upon with the International Monetary Fund (IMF) and the document will be sent for President Traian Basescu to sign. The letter does not mention introducing the additional fuel excise tax or granting payment facilities to natural persons for bank installments. “The excise tax is in force. New letters only refer to future obligations, not what is in force, and the draft on fiscal aid for installments was already discussed with and agreed-upon by IMF, so it is not an issue and should not be included in the letter; it is not one of Romania’s obligations, but one of our rights,” PM Victor Ponta stated.
In turn, Romanian President Traian Basescu said he would mandate the signing of the letter of intent to the Minister of Finance, Victor Ponta, and BNR governor Mugur Isarescu, as long as the document does not make reference to the fuel excise tax and the renowned ‘ElectoRata.’ In a different view, PM Ponta said on Thursday at the end of the conference unveiling the 2013 activity report of the National Anti-corruption Directorate, that no change would be made to the taxation system this year, but there will be attempts to impose the differential tax rates of 8 and 12 per cent on the low-income earners as of 2015.

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