Romania Will Ease Tax System Not Lower Taxes – President

„I know you need a simplified tax system and I agree we all need it. On the other hand, I want to make it clear that easing the country’s tax system does not entail tax reductions,” Basescu said.

The president stressed that Romania has one of the lowest taxation levels in the European Union, adding the state needs to collect money for sectors such as education, health, defense and public order.

„I made a comparison between Romania’s tax level and that in other EU member states and I believe the tax level will neither be reduced nor increased. One of the country’s major objectives in negotiations with the International Monetary Fund was to maintain unchanged the VAT and the flat tax level,” Basescu said.

The president also talked about the need to reduce bureaucracy and corruption. He said Romania wants to implement solutions to uphold foreign investors, adding decisions should be taken so that maintaining the tax level unchanged will not have a negative impact on investors.