Romania will maintain the 16% flat tax until the parliamentary elections in 2016. After that, the political parties which will win the elections will decide if they will further keep it or modify it, said Romania’s Prime Minister Victor Ponta, who will run for president on Sunday. He also said there will be no tax hike next year.

Ponta’s main opponent in the presidential elections, liberal Klaus Iohannis, asked the PM to present the state budget project for next year by November 15. He added that Ponta will have to explain how, if not through increasing taxes, the Government will cover a EUR 3.4 billion deficit, resulting from the social security tax cut and from the salary and pension raises promised by Ponta.

editor@romania-insider.com