Vladescu: The taxes and duties system will be rethought in 2011

Four days after the Government decided to raise VAT from 19% to 24% starting July 1st, Sebas¬tian Vladescu, the Minister of Finance, announces that this may not be the only increase. Romanians won't pay more starting this year but will starting 2011, when the new taxes and duties system the Ministry of Finance is working on right now will be operational. "I think the entire taxes and duties system will have to be rethought for 2011. We're in a phase where we're building options for the political world", said Sebastian Vladescu yesterday.

He did not provide many details on the level taxes will reach next year, but taxing properties is certainly being targeted. The Minister promises that the new property taxation system will not affect "the masses", those that "live in two-three room apartments, and have small incomes", but only "those that have a large number of properties or large properties".

Changing the flat rate tax is not being excluded, which is one of the advantages Romania still has in the eyes of foreign investors. "If you're asking if there will still be a flat rate tax next year, I can tell you the subject is open for discussion", says Vladescu. Also under changes, the allowances of new mothers, which would have to be calculated per the average salary of the previous two years, believes the Minister, and not just the last 12 months, as it currently is.

Gandul