In yesterday's meeting, the Government has approved the emergency ordinance which allows the updating of local taxes to match the inflation rate. As a result, the local authorities are allowed to raise the taxes which fall within their area of competence, as well as taxes similar to the above and the applicable fines, by 16.05%, government spokesman Andrei Zaharescu said.

The decision, which will apply starting in January 1st, 2013, would generate an increase of local revenues by 527.73 million lei, he said.

Thus, next year, taxes for buildings, land, vehicles, shows, for the issue of certificates and authorizations, and the fee for the drivers' license tests may be raised, as well as the fines levied by the local authorities.

Prime Minister Victor Ponta yesterday said that the decision will not be published until it is understood that the government is not the one raising the local taxes, the only ones who can do the indexing to the inflation rate are the local authorities, if they want to. "Today in the government meeting, the decision promoted by the Ungureanu government was brought up again. That decision allows according to the law, according to all the laws concerning the public finances, - Local Council, General Council of the City of Bucharest - to update the local taxes with the inflation. However, it does not require them to do so", he said.

The prime-minister considers that prior to the publication of the Government Decision, it needs to be "very clear" that the Government does not require the hike of the local taxes, it merely allows them to update them to match the inflation rate, if they consider this action be necessary and useful. "The local taxes won't be raised, no local tax will, and it won't be the Government doing in this any manner whatsoever", said Victor Ponta.

The government informs the local authorities about th