Vladescu wants 16% flat tax across the board
Finance Minister Sebastian Vladescu wants to bring more money to
the budget by extending the flat tax to all categories of
individual incomes.
The finance minister wants a 16% tax to be levied on all categories
of individual incomes, which include interest rates, stock exchange
transactions, and luncheon vouchers.
"I hope the 16% tax will be levied across the board," said
Vladescu, in answer to a question by journalists.
He went before Parliament yesterday to be heard by the Standing
Bureau of the Senate, but, because of the plenary vote on the "ANI
law", the hearing on commitments to the IMF was put off.
Last year profits made from stock exchange investments and from
investments in mutual funds were not taxed, as a result of a
measure taken by the Tariceanu Government to support the capital
market, which suffered massive losses due to the financial crisis.
The tax on profits from stock exchange investments was introduced
in 2006, when the Finance Minister was also Sebastian
Vladescu.
Individuals were also exempt from payment of tax on interest earned
for term deposits. Up until last year, incomes from sight deposits
and from current accounts were deemed non-taxable by the Fiscal
Code. Under the circumstances, the individual clients preferred to
place their disposable income in savings accounts, attracted by the
fact that although the interest rate on these products was slightly
lower than in the case of term deposits, it was not subject to a
16% tax.