Posts tagged ‘tax’

October 24, 2010

Paid His Fine with Pennies, in Protest

It took the tax clerk a full day’s work to count just a bit less that three quarters of one man’s fine money. When the working day was over, Mr. Miroiu was asked to come again the next day, so they could finish the count.

Our hero is a 33 years old man from Constanţa, Romania, who decided that he was going to give authorities a real run for the money that he had to pay for a fine. Silviu Miroiu considered himself innocent of the traffic offence he was charged with, so he challenged everything, from procedure and technicalities to the actual matter of the offence. Eventually, he lost.

And when faced with bailiffs coming to his door, he eventually decided that he would pay the amount. 1000 Romanian Lei, approximately 300 US Dollars, that he exchanged into 20.000 pennies of 5 Bani (subdivision of the Romanian Leu) each. With the amount, he went up to the counter. And you know what happened next.

This is a very popular form of protest in Romania, especially among young people who are charged fines and supplementary taxes. Other similar protests have been previously reported in the past 10 years.

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October 21, 2010

Romania’s Parliament Adopts Popular Law by Mistake

A bill concerning the lowering of the VAT for food to 5 percent, from 24, and another one, that exempts from income taxing all pensions below 2000 Romanian Lei (600 US Dollars) was passed on Wednesday by mistake. And that, coincidentally, on the first day of negotiations with the IMF representatives in Bucharest, regarding a decrease in taxes.

The MPs voted, with an overwhelming majority, in favour of both bills, only to admit, minutes later, that they had no idea what they were actually voting for. But now, there is no way back. The newly voted laws must go to the President for the final approval. Traian Băsescu, Romania’s President, has now two choices: either to sign the bills into law or to send them back to Parliament, for review.

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October 20, 2010

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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