Romanian Govt To Keep Taxes On Multiple Homes, Large Cars At New Level In 2011

The Government's plan is described in the normative act stipulating the tax hikes, which also includes estimates of the additional budget revenue.

According to this document, the Government expects an extra RON49 million in 2010 and RON101 million in 2011 from the higher tax on owners of multiple buildings, and an added RON110 million in 2010 and RON227 million in 2011 from the increased taxation of cars with engines larger than 2,000 cc.

The tax on buildings will be levied regardless of their destination, according to the normative act.

The Government argues the tax hikes are justified since previous measures have proven insufficient to maintain the budget deficit and enable Romania to fulfill its commitments to international bodies.

In a meeting last week, the Government decided to double the tax levied on cars with engines larger than 2,000 cc and that owners of multiple homes would pay 65%, 150% and 300% more on the yearly home tax, set in ratio with the number of homes owned.

The currently enforced Tax Code says individuals who own two homes pay 15% more on the yearly home tax, those who own three home pay 50% more, owners of four homes pay 75% more, while owners of five or more homes pay 100%.

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