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    BUCHAREST, (10 mai 2010)

    Romania To Tax Food Vouchers, Bank Deposit Interests

    Romania’s government will tax food vouchers, capital gains--including interests on bank deposits--and severance payments, and will eliminate tax exemptions for IT programmers.

    Romania To Tax Food Vouchers, Bank Deposit Interests

    The measures to extend the taxation pool are included in the supplementary Memorandum of Understanding agreed by Romania with the International Monetary Fund, a document obtained Monday by MEDIAFAX.

    The document also stipulates a 25% reduction of salaries, bonuses and other indemnities for all employees in the public sector, starting with June 1, 2010. Moreover, the MoU specifies public job cuts will continue in the coming months.

    An IMF mission arrived in Bucharest April 27 for the fourth review of Romania's performance under a EUR13 billion loan package signed last spring. Following the mission, the IMF will decide whether to disburse a fifth installment to the country, worth EUR850 million.

    However, the money is conditioned by Romania's ability to implement a series of drastic spending cuts in the public sector aimed at containing a growing public deficit.

    Romania and the IMF have agreed to a budget deficit of 6.8% of GDP in 2010, from an initial target of 5.9% of GDP.



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