The Romanian trade unions proposed the International Monetary Fund (IMF) delegation that the flat tax rate be dropped and differential taxation be introduced, CNS Cartel Alfa National Trade Union Confederation president Bogdan Hossu said.
'We back the drop of the (16 percent) flat tax rate and the introduction of the differential taxation of incomes, since it is only in this way that the formation of a middle class in Romania can be encouraged. Also, if a 5 percent cut in the social security contribution is achieved, then half this move must be operated at the employees and half at the employers', Hossu said after the meeting with the IMF delegation.
He communicated the international lender representatives that the Romanian authorities should find solutions to complete the state budget by ?end-of-the-line' taxation measures.
'For example, they could introduce a new profit tax for the units recording very high profits, such as Petrom (oil company)', he said.AGERPRES