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Romanian Govt Keeps RON1,000 Cap On Tax-Exempted Pensions Citing Budget Restraints

Romania’s government won’t raise the ceiling for pensions exempt from income tax to 1,500 lei (EUR1=RON4.2897), as the Labor Ministry had proposed, and will keep it at RON1,000, citing budget restraints.
Romanian Govt Keeps RON1,000 Cap On Tax-Exempted Pensions Citing Budget Restraints
27 oct. 2009, 15:42, English

Increasing the ceiling for pensions exempt from income tax is not appropriate now because it would have a negative impact on budget revenue, the Finance Ministry said in a document drafted this month, obtained by MEDIAFAX. The document adds taxation will be improved in the future depending on the results of enforced Tax Code amendments and the introduction of new tax exemptions will consider budget restraints.

Former Labor Minister Marian Sarbu said in spring the government would increase the ceiling for pensions exempt from income tax to RON1,500 from RON1,000 by early 2010.

According to data released by the government early October, Romania has 5.7 million pensioners and just 4.9 million contributors to the public pension system.