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Sunday, February 06, 2005

The Flat Tax - After the heat ...

It's been a month already since the new flat tax was adopted ....

Bad news

Although small and medium enterprise implemented the new tax system without reporting any major issues, the surprise came from some well known companies. For example Telemobil (Zapp as we know it), refused to major the salaries for his employees ... The company's management decided to update the salaries only after three months and only by individual case analysis / appraisal. Ignoring that this policy is contradiction with the law, some companies (for my surprise some of the major companies) decided to keep the revenues generated by the new tax system for themselves.

Worse news

It seems that the government initial plans regarding the resources to finance lower tax income were not so well elaborated. After the negotiations with IMF it seems Romanians will have higher prices on gas (up 31% - 5% in January, 26% in april), electric energy (up 10-11% - 5% in January, 5-6% in April) and some other taxes might increase more or sooner then expected.

I wonder what other surprises will expect us ...

Posted by Mircea : 2/06/2005 10:41:00 pm