Videanu: Flat tax and VAT will not grow in 2010
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The level of the flat tax and the value added tax will not increase in 2010 in Romania, as any increase in taxation would be “an error,” acting Economy Ministry Adriean Videanu said during an economic forum Thursday.
Romania applies a 16% flat tax on income, since 2005, The VAT level currently stands at 19%.
Income tax and VAT account for almost half the country's budget revenue.
On Wednesday, Romania's central bank governor Mugur Isarescu said the authorities can either redirect budget funds to better performing economic sectors or take the unpopular measure of hiking taxes in a move to consolidate public finances.
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