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Report: Flat tax led to higher budget incomes in Romania

de     HotNews.ro
Luni, 1 mai 2006, 0:00


The fiscal reforms of 2005 that included the introduction of the flat tax did not produce a hole in the state budget as many have speculated, according to a report published Monday by a Romanian NGO, the Romanian Academic Society - SAR. The report says those very reforms may lead to higher public incomes both in absolute figures and by GDP percentage.

The real problem is that the Romanian budget has more money than efficiently manageable, according to the report edited by SAR head Sorin ionita.

The situation of budget income collection in January 1 - April 16 2006 shows higher data for all figures, from income and profit tax to VAT, excises, custom duties and others, compared to the same period last year.

On the other hand, official figures show that the collected GDP percentage is the same as before the reform despite taxpayers were left with more money at their disposal.




















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