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The Cabinet approved measures to implement the tax reform meant to improve the wage system, increase incomes of citizens and facilitate economic activity

The Cabinet approved measures to implement the tax reform meant to improve the wage system, increase incomes of citizens and facilitate economic activity

The matter concerns introducing a single income tax for individuals at a rate of 12%, increasing the amount of annual personal exemption by more than 2 times - from 11280 to 24 thousand lei, reducing by 5 percentage points the employers’ contribution to the state social insurance budget - from 23% to 18%, increasing from 2 to 3 years the repatriation of funds, goods and services received as a result of foreign economic transactions, exempting the individuals and legal entities from paying a fine and a penalty for failure to pay taxes, provided that the obligation to pay the principal amount of tax is fully met, reducing VAT for the services of the HoReCa industry (hotels, restaurants, cafes) from 20% to 10%, introducing a single monthly income contribution amounting to 500 lei for taxi drivers who have incomes up to 10 thousand lei per month with compulsory payment of contributions to the medical insurance and social insurance funds, providing the voluntary declaration of undeclared funds with a 3% tax payment, etc. Prime Minister Pavel Filip said that representatives of the business community welcomed these and other approved measures, while the actions of the authorities fit into efforts to combat the shadow economy, stimulate the business environment, mitigate tax pressure on enterprises, reduce pressure from the power and control structures for business, attract investors. The Prime Minister said that the government has reached a compromise with the development partners on the measures that will result in an increase in the budget revenues and in the implementation of a larger number of social projects. Pavel Filip noted that the level of salary payments in envelopes is estimated at 3.5 billion lei, this money not being transferred into the budget, and if the situation improves in this area, it will be possible to introduce more investment projects, raise salaries and pensions. The Prime Minister instructed the Ministry of Finance to ensure the implementation of this important reform and see what can be done to eliminate other existing barriers to business development. //25.07.2018 - InfoMarket.

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