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Central Bank sources: Flat tax must grow to 19%

de Radu Rizea
Vineri, 14 noiembrie 2008, 9:57 English | Business

The new Government about to be elected will have to raise the flat tax to 19%, along with other tax increases, in order to survive the crisis, sources in the Romanian Central Bank (BNR) said for NewsIn. "We will have to ask for a flat tax increase from 16 to 19%, because it will be impossible for Romania to keep the budgetary deficit under 3% in any other condition, given both the crisis and the increasing budgetary spending", the BNR sources said.

A 19% flat tax is also applies in Slovakia. Banking officials say that other taxes that may be expected to grow are the VAT and the tax on real estate transactions, at the same time with the introduction of taxes in agriculture.

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