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Romania’s Govt Promises IMF To Tax Drug Sellers’ Turnover

Romania’s government engages to introduce the tax per planned turnover for the drug distributors, according to the additional document that will be sent to the executive board of the International Monetary Fund, obtained Monday by MEDIAFAX.
Romania’s Govt Promises IMF To Tax Drug Sellers’ Turnover
10 mai 2010, 23:43, English

The letter that the government will send IMF general manager Dominique Strauss-Kahn anticipates zero or even negative economic growth and a fiscal gap of 9% of the gross domestic product, within the basic scenario.

In order to reduce the budget deficit to 6.8% of GDP, the government engages to cut all public wages by 25% and the pensions by 15% until June 1.

Moreover, the government will freeze the early retirements and will tax the food vouchers, the incomes obtained from the capital earnings, inclusively the bank deposit interests, and the compensatory payments.

„If these measures are not implemented by June 2010 or if they do not have the anticipated effect, supplementary actions will be implemented in order to increase the state revenues, including tax increases,” according to the additional Memorandum of Understanding agreed with the IMF and the European Union.

Joint teams from the IMF, the EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania’s performance under a EUR20 billion financial package signed last spring.