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Romania To Tax Owners Of Multiple Properties Extra

Romania will introduce an additional tax for real estate property owners who own more than one property, and taxation quotas will increase for each additional piece of property, Prime Minister Emil Boc said during the Cabinet meeting Wednesday.
Romania To Tax Owners Of Multiple Properties Extra
12 mai 2010, 10:37, English

Boc called on the finance minister to introduce this type of taxation in a draft law.

Boc said the first property would be taxed the same as before for everyone, but additional charges would be levied for any other additional piece of property, in a bid to boost budget revenue.

Recession-hit Romania, which is relying on a EUR20 billion IMF-led loan, has pledged to drastically cut public spending and reign in this year’s budget deficit to 6.8% of GDP. Cuts include a 25% reduction of public sector salaries and 15% of pensions, unemployment and other social benefits.

The Government also promised to cut the number of public employees by 70,000 this year, to 1.29 million and pledged to „aggressively” revive the country’s privatization program.

The IMF is expected to disburse a tranche of nearly EUR0.9 billion when Romania implements its promised reforms.