The Minister for Small and Medium Enterprises, Social Democrat Constantin Nita, on Friday said that he would ask the Government to annul the tax as of this fall. The opposition Liberal Party announced that it relies on the Social Democrats to obtain the tax suspension. Prime Minister Emil Boc retorted that “no legislation is eternal in Romania” and that fiscal policies can be adjusted “from time to time”.
Meanwhile, the Finance Ministry did not deny that legislation on the issue is temporary but did not specify when the minimum tax would be eliminated, given that authorities are seeking for ways to increase revenues to the state budget so it can end 2009 with a 4.6 percent deficit, as agreed with the International Monetary Fund (IMF). Finance Ministry State Secretary Gratiela Iordache told Business Standard that there are several fields where the measure is not applied, such as start-ups, companies that legally suspend activity, individual companies, family associations and authorized individuals.
