The government yesterday was taking into account a fall from 44 per cent to 41 per cent in the overall social insurance contributions paid by employers, Mediafax reports. Further more, the date will soon be set when the tax reduction will enter effect, people familiar with the matter say.
The CAS reduction is part of a broad package of economic incentives also including a reduction of the flat rate tax, starting next year, and a credit card for small and medium-sized enterprises. The flat tax reduction alternatives being discussed are from 16 per cent to 14 per cent, or 12 per cent respectively.
Sources with the Ministry of Public Finance said in March that government was doing simulations involving employer diminished social insurance contributions of 1 per cent to 3 per cent.
The additional letter of intent between Romania’s Government and the International Monetary Fund (IMF) after the evaluation mission Oct. – Nov. 2010 shows the two sides also have in view lower workforce taxation if economy rebounds and creates enough “elbow room tax wise.”
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