Romania’s Govt Estimates To Collect Extra RON421M In Meal Vouchers, Copyright Income Tax Revenues

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Estimations were made by the Finance Ministry in a set of documents regarding the results of levying taxes on meal vouchers and income gained from copyright.

Documents show the Government expects the tax on meal vouchers, which will be implemented starting June 1, will generate extra RON345 million in the second half of 2010. Estimations are based upon data which show that 499.4 million meal vouchers worth a total RON4.2 billion were granted in 2009.

Regarding taxes on income gained from copyright, the Government said it will introduce social security contribution quotas, adding the measure will generate extra RON65 million in the last six months of the year, which translates into 0.012% of the gross domestic product.

The Government also said deductible costs will be reduced to 25% from 40% in the case of intellectual property rights, which will generate extra RON11 million.

Romanian authorities announced recently the country, which is relying on a EUR20 billion IMF-led loan, must slash public sector salaries by 25% and pensions by 15% and reduce unemployment and other social benefits in order to reign in this year's budget deficit to 6.8% of GDP. Moreover, Finance Minister Sebastian Vladescu said Wednesday the country will apply a 16% tax on income gained from copyright, stock market gains and on interest generated by bank deposits.