VAT uncertain. Consultants say fiscal strategy is not for real
The flat tax and social contributions will not be modified until
2013, the VAT level remains uncertain and the cut in salaries and
number of employees will not be offset any sooner than 2013.
These are but some of the provisions of the budget-fiscal strategy
for the next three years endorsed by the Government on Wednesday,
which also includes information on the trend of expenses of
ministries from 2011 through 2013.
Tax consultants believe cannot talk about a real fiscal strategy,
because its provisions are unlikely to stimulate investment and
eliminate overtaxation of labour.
As for maintaining the income tax at 16%, the document that
Mediafax obtained reveals that the medium-term collection trend is
generated by the moderate growth of the gross average wage in sync
with productivity and collection from income tax will maintain at
3.3%-3.4% of GDP in 2011-2013.
The fiscal strategy also reveals that the VAT trend will comply
with Romania's commitments undertaken before the IMF, but does not
specify whether the new 24% level in place since July 1 remains in
use on medium term or not.