Romanian Govt To Modify Fiscal Code

The Romanian government will modify the fiscal code and approve through an emergency ordinance the absolving of reinvested profit taxation and the compensation of the value added tax, or VAT, with the reimbursed sums from the state through VAT, Prime Minister Emil Boc said Thursday.

The Finance Ministry determined that the budgetary impact of exempting from taxation the reinvested profit will be at 3.44 billion lei (EUR1=RON4.2314), or 0.59% of the gross domestic product.

Boc said the compensation procedure will aim the current obligations, as well as the reimbursed sums whose deadline expired by 45 days.

The cut of central administration salary fund by 20% in 2009, the assignment of 20% of the 2009 budget spending for investments, mainly in infrastructure, the payback of former government's unpaid bills, maintenance of Eximbank's management stability and the capitalization of CEC Bank are some of the anti-crisis measures approved by the government.

Mediafax