PM Boc says signatories of motion misrepresents the minimum tax

The authors of the non-censure motion misrepresented the introduction by the Government of the minimum tax for companies, said, on Wednesday, PM Emil Boc, before the joint plenum of Parliament.

„The minimum income was simplified, and misrepresented. You said that this tax is applied in France, Hungary and in other countries, but in a totally different manner. But you forgot to say that in France, for over 35 years, and that, in their initial form, it had a general character, just like it is in our existing form, ” said Boc.

He gave as a reason for the introduction of the flat-tax by the fact that Romania has one of the most taxation ratio, with the percentage of the total revenues in 2008 representing 32.8 percent of GDP, while the average of the Euro-area stands at 52.5 percent.
„Romania has a low level of taxation as regards VAT, collecting a percentage of GDP, while the average revenues at the level of the EU stand at eight percent of GDP.

The cashing from excises stand at three percent of GDP, while in Bulgaria it stands at 5.8 percent, explained the prime minister.
Under these conditions, the Executive introduced the minimum tax, in order to enlarge the taxation basis, stressed Boc.

„In front of this reality showing us that we virtually have the lowest fiscal rate in the EU, we chose the enlargement of the taxation basis for the tax on profit.

The high value of the taxation basis for the tax on profit asked for the introduction of this limitative measure aimed at ensuring an equitable and fair fiscal system for all tax-payers. I stress, the high volatility of the taxation basis for the tax on profit required that,” concluded the head of government.

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