The Minister of Small and Medium Sized Enterprises, Trade and Business Environment, Constantin Niţă, said, in Alba Iulia, that, in the next years, the governing parties could reach a compromise on the flat tax, as it affects revenue to the state budget. Niţă said that the 16% rate, introduced by the former government, is good for the business people, but is not good for the increase of budgetary revenues, informs Mediafax. "With such budgetary revenues, most areas will not be able to have enough money to make their projects and programmes in that field. We will not have this money if we do not consider a reform of revenue. When we come up with a reform of revenues and will reach 36, 37, 38% of GDP, then we can say that we have reached a goal that is in the EU, where most countries have an average of 37%. We cannot go on with 30-31% of GDP, it is impossible to support the pace of development with 30-31% of GDP", said Constantin Niţă.
According to the quoted source, "in the next four years, we may reach a compromise, given the lack of funds from the state budget," because the only alternatives would be the increase of the flat to 20%, a differentiate rate, or the increase of VAT to 22%. Constantin Niţă explained that without an increase in revenue "will not be able to move forward" and it will not be possible to grant higher pensions, higher wages, to make infrastructure investments, and to sustain important areas, such as the Army, health, education. Niţă said that PSD does not abandon the idea of a differentiated rate of taxation, which he considers the best solution.
Cristian Pârvan, the general secretary of the Romanian Business People Association (AOAR) told us that such a measure taken in haste would have a negative impact on the market and, implicitly, on the Romanian economy. "The flat tax issue is a very complex one, and to come and just throw some f
