RSS
Hajdenberg (IMF): all fiscal measures should have an impact study and the purpose should be to reduce the deficit
It is important that all fiscal measures have a minute study of impact and, their purpose should be the gradual reduction of the budgetary deficits, stated for Agerpres Alejandru Hajdenberg, the IMF representative for Romania and Bulgaria.
‘As we have presented in the report published on the margin of the consultations on the basis of article IV, published at the beginning of this year, the fiscal policy has to have as a purpose the gradual reduction of the budgetary deficit. It is necessary to have consolidation measures to reduce the deficit to the medium-term target of 1.5% of GDP. As important as that, the fiscal policy must rely on measures of high quality. We consider that it is important that all measures be the subject of a minute study of impact and avoid the useless volatility for households and companies’ Hajdenberg said at the request of Agerpres.
The IMF mission had the annual evaluation of the Romanian economy in March of this year in Bucharest on the basis of article IV of the statute of the international financial institution. On the basis of the information available at the moment of discussions was made into a report of the staff of IMF on 4 May 2017, report which was analysed by the executive board of IMF on 22 May.
The government approved on Wednesday through the amendment of the Fiscal Code a series of measures regarding the tax on SMEs, tax on income and social contributions.
The normative act increased from 500,000 euro to a million euro the threashold of the necessary income for a company to be considered as a micro-entreprise, so that all these companies will pay a tax of 1% for income, instead of 16% per profit.According to the minister of finances Ionut Misa in Romania there are 450,000 compnaies with a turnover of under one million euro.
At the same time, the condition regarding the income from consultancy and management following whih the companies get such income can pay income on the income of micro-entreprises if the income goes not go over 20% of the total income has gone. At the same time, the system included the judicial people who didn’t get into the conditions of this income, the judicial persons from the domain of insurances, the capital market, the banking domain, the gaming, the domain of natural resource extraction, with the purpose of transposing into the national legislation of the provisions of the Directive 2016/1164/EU for the combatting of outsourcing of profits of the multinational companies.
Through the ordnance adopted this week, the authorities decided to take the social contributions from the employer to the employee and the diminution of the income tax from 16% to 10%.
Starting with January 2018, the level of contributions paid for the gross salary will drop with 2 percentage points from 39.25% to 37.25% but from the total of 22.75% contributions due by the employer 20 points will transfer to the employee. Thus, from the gross salary, 35% will be contributions retained by the employer in the name of the employee and the contributions which are left for the employer 2.75% (after the transfer of 20 percentage points to the employee) drop to 2.25% and will cover the risk for unemployment, work accidents, medical leave, salary debts.
At the same time, the government approved the normative act which includes the diminution of the contributions to the pillar II of pensions from 5.1% to 3.75%.