Local taxes to be updated as of 2010 with inflation over past 3 years

Local taxes will be increased starting 2010 by the updating with the inflation rate of the past 3 years, according to a Government Decision taken on Wednesday, said sources with the Ministry of Public Finance (MFP).

Taxes levied for homes, land and cars and other local taxes haven’t been increased since 2006 and might go up next year by 20 percent on average, allowing for the inflation of the past three years – 6.57 percent in 2007, 6.3 percent in 2008 and 4.3 percent in 2009 (the level forecast for the budget rectification), said the same sources.

The Government on Wednesday decided to allow local administrations to update minimal and maximal levels of taxable values, taxes, local taxes and other similar taxes and fines with the inflation over 2007-2009.

For the adjustment of taxes to the EU level the exchange rate will be of 4.09 lei/euro.

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