Romania’s income tax to be slashed to 10 pct starting January 2018

The president of the Senate, Calin Popescu Tariceanu, said that the income tax will be cut from 16 percent to 10 percent starting January 2018.

Tariceanu, who is also president of ALDE, the party forming the ruling coalition with the PSD, says that the decision to slash the income tax is included in the governing program.

He added that the fiscal burden will be moved from the employer to the employee starting next year. As a result of this move, the gross minimum wage will be hiked, which in turn will lead to an increase of the pension point, while the net wage will also go up, said Tariceanu.

“The expense of the employer will not go up under any circumstance,” Tariceanu told journalists.

In late July, the Ministry of Finance said that the number of social contributions owed by employers will be cut from six to two, with the contribution for healthcare and pensions to remain in place. Also, leaders of the ruling coalition said that these two contributions will be owed by the employees, but the employers will continue to pay them.