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Friday, November 12, 2004

Parliament Votes 2005 Budget, Opposition Says No

The parliament has adopted with 239 votes in favor and 48 against the budget for next year, in spite of the opposition's negative vote.

The budget law provides for an economic growth of 5.3 percent next year, an inflation rate of 7 percent and a deficit of 1.5 percent of the GDP, in line with the country's agreement to the IMF.

Major changes are to be brought to the taxation system, as the tax on profit is to be curbed from the current 25 percent to 19 percent.

The minimal taxation quotas for revenues derived from salaries was also reduced from 18 percent to 14 percent while the maximum one was also cut from 40 percent to 38 percent.

The employers' contribution to the social insurance budget is also shedding 2 percentage points.

Opposition said it would not vote the budget, considering it was used by the ruling PSD as an electoral instrument

Posted by Iulia Rasoiu : 11/12/2004 02:34:00 pm