The Romanian Senate recently approved cutting the social security tax (CAS) paid by Romanian companies on behalf of their employees by 5 percentage points. This measure, which was intensely promoted by the Government led by Victor Ponta, will be effective starting October 1, 2014. It steel needs to pass the vote in the Chamber of Deputies. The social security tax cut, which the Government wanted to implement by July 1 this year, was the main disagreement topic between Romanian authorities and the International Monetary Fund (IMF) delegation to Bucharest. However, the tax cut was welcomed by the local business community.
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