IFM Delegation in Romania Negotiates Tax Cuts

This is what Romanian negotiatiors expect to convince the IMF representatives to agree to: lowering the income taxes paid by employees from 16 percent to only 12. Also, Romanians want to persuade the IMF to allow the taxes per employee paid by the employer to be reduced from 44 percent to just 41.
The decrease in taxes is likely to deprive the nation’s budget of 2.2 billion Euros. This makes it unlikely for Romania to stay within the deficit target, of 4.8 percent, as agreed previously by the IMF. Romania has borrowed 20 billion Euros from the IMF since the beginning of the crisis, bringing Romania’s foreign debt up to over 80 billion.

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