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Foreign financiers: Lower single tax will lead to re-discussing Accord

Sources close to Romania’s financiers – European Commission, IMF and World Bank told Hotnews that a lower single tax of 10% instead of the present 16% will lead to re-discussing the Accord signed by Romania. “We cannot oppose the Parliament of a country to do what it thinks best for the country’s economy. At the same time it is our duty to present our point of view. This point of view is that talks about a new single tax must be carried out in a broader context”, sources declared.

According to them more ample talks are needed on this topic, in which all signatories of the Accord should participate. “We will witness an income drop and the targets established with Romania are very well defined. It seems that an income drop not accompanied by additional measures will affect the deficit target and we don’t know whether Romania can bear such an income drop at the moment.” Without mentioning any additional measures they said: “This is the government’s job. They should show us calculations and suggest measures meant to keep Romania within the established parameters.”
BNR officials are not thrilled either by the idea promoted by PDL MPs. “AT this moment, most of what has been reformed in Romania was done as a result of IMF, CE and WB pressures. They gave the money and asked several necessary conditions. They threw the life saving belt and asked you not to drown. To modify a valid contract without discussing this aspect with the other parties and assuming not to observe the targets for which you engaged could not be seen with good eyes by some people,” said BNR officials.

On the other hand Iulian Urban, the initiator of this law declared that he did not think IMF would oppose such an initiative. “The accord does not include the level of the single tax. If we show the Fund that the lower tax will lead to income increases I don’t think IMF officials could be against the law,” Urban explained.

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