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Social insurance contributions, to be reduced 5 percent if arrears and evasion are diminished

February 5, 2014

Agerpres, Bucharest, Romania

Feb. 05 -- BUCHAREST -- The social insurance contributions could be reduced by 5 percentage points if the arrears and tax evasion are diminished, Deputies' Chamber Committee for Budget , Finance and Banks Chairman Gheorghe Dragomir said after the meeting with members of the International Monetary Fund (IMF) delegation. 'If we have the voluntary collection, if the arrears diminish, if the tax evasion diminishes, the social insurance contribution [for the employer] will certainly be cut by 5 percentage points. There are sufficient resources to cut these 5 percentage points and not only that. It is also about the tax on the reinvested profit and those facilities which will come to the aid of economic agents. Of course, other measures will also come that will only encourage the business environment,' Gheorghe Dragomir said. According to him, within the meeting with the IMF delegation members, they did not talk about introducing any additional fee. However, Democratic Liberal Deputy Gheorghe Ialomitianu , member of the Committee for Budget, Finance and Banks of the Deputies' Chamber, said that the signals received from the IMF, related with the reduction in the social contributions and with the reinvested profit, were negative. According to him, the IMF agrees with the introduction of new taxes and fees, because the excise on diesel oil will be implemented starting April 1 and does not compensate the amounts lost from the state budget through the reduction in the social contributions. 'The IMF said that they agree with the introduction of new taxes and fees, because the excise on diesel oil will be implemented starting April 1 and does not compensate the reduction in the social contributions and the tax exemption for the reinvested profit. Other solutions must be found. The only thing that can be done is for the excise on diesel oil to be included in the letter [of intent] and assumed by the Government. President Basescu does not want to assume this fee, because it is a disaster for the economy, for the power of purchase. The President does not want to block the agreement with the Monetary Fund , but does not assume the bad measures taken by Ponta Government,' Ialomitianu explained. ___ (c)2014 Agerpres, Bucharest, Romania Visit Agerpres, Bucharest, Romania at www1.agerpres.ro/english Distributed by MCT Information Services


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Source: Agerpres (Romania)


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