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Monday, August 29, 2005

Government will adopt new fiscal strategy this week

A new fiscal strategy for the coming years developed by the Ministry of Public Finances will be discused this week by the Government.

New stipulations of the fiscal strategy include increasing taxes for houses and apartments that exceed 100 square meters, changing taxes for vehicles by fixing rates for every 200 cc of engine capacity depending on the vehicle's class. Vehicle taxes will be calculated at between 10 and 60 lei (2.8 - 17 euros) per 200 cc.

The new fiscal strategy also contains a proposition to increase the Value Added Tax from 19 percent to 22 percent and raising the reduced VAT rate from nine percent to 11 percent. The reduced VAT rate is applied to medicines, books, magazines etc.

Currently, companies with a maximum of nine employees and an annual turnover of less than 100,000 euros pay a three percent tax on turnover to the state budget. The legislation also stipulates these companies must have at least one employee.

The new fiscal strategy includes provisions raising the number of employees to a minimum five.

Posted by Iulia Rasoiu : 8/29/2005 11:43:00 am