Reducing social contributions, the VAT and the flat tax are the governmentaa‚¬a„¢s priorities, says Andreea Paul-Vass

Newsroom 10/02/2011 | 19:23

Among the government’s fiscal priorities this year there is reducing the social contributions, and on the long run, cutting the VAT and also reducing the flat tax, said Andreea Paul-Vass , adviser to the Prime Minister Emil Boc, during the 9^th edition of the Romanian Tax, Law & Lobby event organized by Business Review this Thursday. She explained that there is a “high probability” that the social contributions cut will take place during the second semester of 2011.

In her opinion, 2011 should be the year when the authorities will decrease the fiscal burden starting with the labor costs. On the long run, the government plans to cut the VAT and the flat tax, according to the PM’s adviser. “We are surrounded by countries that have lower flat taxes”, she added nominating Bulgaria, Ukraine, Hungary, the Republic of Moldova and Russia as Romania’s fiscal competitors. Vass also said that there is an “iron political will” to simplify fiscal procedures and to fight tax evasion and that this year companies will see “significant progress” in these areas.

The current turmoil in the Middle East and Northern Africa should bring advantages to Romanian companies which have the chance to replace suppliers from these countries who can no longer do business with Western multinationals. Vass explained that there are opportunities in the fields of pharmaceuticals, clothing, automotive, agricultural products and other areas but that although the government has taken diplomatic action through foreign economic missions and attendance to international fairs, there still remains the problem of the quality of Romanian products and their prices.