ZF English

Government prepares to cut labour taxes

Autor: Mediafax

13.03.2011, 23:46 18

The Romanian government will come with a set of taxincentives to reduce taxation of labour until mid this year,because Romanian employers need to make a profit in order to createnew jobs, said Labour Minister Ioan Nelu Botiş, 43, at a meeting inBistriţa with businesspeople in the county.

"We will seek to reducecontributions, so the labour tax will be lower. Currently, taxationof labour amounts to around 45%. Unfortunately, it is quite highcompared with other countries in the European area and I think weshould cut it by a few percentage points, but I don't know howmany. Based on analyses, it is analysts who will tell us up towhere to go," Botiş said.

Another sector where Romaniais experiencing anomalies is the allocation of amounts for socialservices (family allowance, child rearing benefits, disabilitybenefits), where there are 202 types of such allocations, so,according to the Labour Minister, out of the pockets of those whoare working money goes into the pockets of those who are notworking, via 202 channels. In fact, over 10 million Romaniansbenefit from various forms of social security, which costs thestate around 8.8 billion lei (2 billion euros) a year - a figuregiven by former Labour Minister Mihai Şeitan.

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