Romania Fin Min Says Tax Changes Not Analyzed

„We are not considering any change of the taxation system,” Vladescu told a news conference.

He said Romania’s half-year budget revision will be drafted based on a deficit for 2010 estimated at 6.8% of the gross domestic product, following talks with representatives from the International Monetary Fund and the European Commission during July 26-August 4.

Joint teams from the IMF and the Commission are due to arrive in Bucharest for a new review of Romania’s EUR20 billion loan agreement signed early last year.

Last week, Vladescu told financial daily „Ziarul Financiar” that Romania should replace the flat tax rate with a progressive taxation system that should apply for all income, including pensions.

In reply, Prime Minister Emil Boc said Vladescu spoke out of place and forbade all ministers to publicly discuss subjects which have not been sanctioned by the Cabinet.