Romania To Widen Health Insurance Tax Base To Pensioners Earning At Least RON740

The Romanian Government decided that pensioners whose monthly income is at least 740 lei (EUR1=RON4.3110) should pay contributions to public health insurance, which enlarges the taxation base by 2 million people, Health Minister Attila Cseke said Monday.

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He said pensioners and revolutionaries will have to pay health insurance contributions of 5.5% as of January 1, 2011.

"This is a very delicate and difficult decisions, but it should have been made a long time ago. Healthcare costs and we need to learn again that healthcare is not free," said the minister.

He added the Government estimates to collect an extra RON1.4 billion per year to the social security budget with this measure. Only pensions higher than RON1,000 are currently subject to taxation.

The Government will introduce the measure by emergency decree.

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