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Chamber of Deputies passed the re-examination of the Tax Code
At a plenary session on Thursday, the Chamber of Deputies passed a request from President Klaus Iohannis for the re-examination of the Tax Code, 279 to 8 and 5 abstentions.
The Committee on Budget and Finance of the Chamber of Deputies on Wednesday accepted a request for the re-examination of the Tax Code with the amendments agreed upon by the leaders of the parliamentary parties and some amendments from the Finance Ministry.
The unanimously passed amendments provide for the introduction of a 20-percent Value-Added Tax (VAT) as from January 1, 2016 and cutting it down to 19 percent as from January 1, 2017.
At the same time, the repealing of a tax on special structures and additional excise duty on fuels is postponed until January 1, 2017, but the special structure tax in agriculture investment projects will be repealed on January 1, 2016.
As far as dividend taxation is concerned, a cut from 16 percent to 5 percent will also come into force on January 1, 2017.
State Secretary with the Finance Ministry Dan Manolescu told the debates inside the Budget Committee that a provision should be reintroduced to the Tax Code, as initially agreed, to allow for the possibility of local councils to increase by up to 500 percent taxes on unkempt land and buildings within city limits, as requested by local administrations.
Committee chairman Viorel Stefan said agreement was reached on the matter after consultations with political leaders.
The Finance Ministry also put forth amendments for clarification, rectification of grammar errors, mentions of Constitutional Court rulings that have to be transposed in legislation, all of which cleared the committee.
The re-examination request cleared Senate on Tuesday.
The Chamber of Deputies is the decision-making chamber in this case.