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    BUCHAREST, (23 nov 2010)

    Romanian Govt Based 2011 State Budget On 16% Flat Tax, Doesn’t Endorse Lower Tax

    Romanian Finance Minister Gheorghe Ialomitianu said Tuesday after the Senate voted to lower the flat tax on income to 10% from 16% that the Government is drafting the state budget for next year based on the 16% rate.

    Romanian Govt Based 2011 State Budget On 16% Flat Tax, Doesn’t Endorse Lower Tax

    "The Government has drafted its tax strategy and is drafting the 2011 state budget based on the 16% flat tax, so we do not endorse a lower flat tax," said Ialomitianu.

    Asked to comment on the fact that Economy Minister Ion Ariton was among the senators who initiated the bill, the finance minister called for patience until the Chamber of Deputies puts the bill to the vote.

    "I am confident this bill will be rejected by the Chamber of Deputies," said Ialomitianu.

    Romania's Senate adopted Tuesday with 45 to 31 votes and eight abstentions a draft law drawn up by ruling democrat liberals, which reduces the flat tax to 10%.

    The draft act will become law if the Chamber of Deputies, which has the final say on the matter, also adopts it.



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