The introduction of the lump tax is not stipulated in the agreement concluded with the International Monetary Fund, but constitutes a government initiative that currently needs to be adopted by the Parliament, Prime Minister Victor Ponta stated. “If the Parliament adopts it, it means the tax on income will not apply to a certain category of services – hotels, restaurants, barber shops; instead, such business owners will only have to pay an annual tax, regardless of registered incomes”, Ponta told Antena 3 on Saturday. Ponta also announced that the government would have to choose between cutting back health insurance contributions (CAS) and raising the untaxed wage base, namely not taxing minimum wage – two options analyzed according to their impact on the budget – as part of elaborating next year’s budget.
In turn, PDL chairman Crin Antonescu said at a television show aired yesterday on ProTV that, in his opinion, the 3 percent CAS cut-back needs two approvals: from PSD and from the government, but a deeper cut-back cannot be implemented because of the IMF agreement. “What I generally hope for, especially in terms of economic policy, apart from an almost finished agreement with the IMF… is to make way for governmental responsibility and power to devise economic policies in Romania”, the PNL chairman added.
New banking regulation, ANAF and insolvency, obstacles in realizing forecasts
This year’s proceeds are much smaller than forecast figures due to funds that have not been collected from banks, as a result of changes in the regulation on provisions, restructuring of ANAF (National Agency for Fiscal Administration_ and companies declaring insolvency to avoid taxes, Prime Minister Victor Ponta stated, according to Mediafax. “Our proceeds for 2013 are not only smaller than for 2012, but also much lower than forecast figures”, he explained. The PM emphasized that the government “will collect zero proceeds” from the banking system due to changes in provision regulations, considering the September forecast was based on collecting RON 1 billion on income from the National Bank alone, plus the amounts drawn as tax on income from other banks. The Prime Minister said that, despite such problems, investment funds would not be cut because co-financing for European fund projects is guaranteed.