Romania Suspends Capital Gains Tax in 2009 To Revive Bourse

"We have taken this set of measures to sustain the capital market in Romania by encouraging local and foreign investors to participate in the trading on the Bucharest Stock Exchange in a time when stock markets are affected by the global financial crisis," Romanian Prime Minister Calin Popescu Tariceanu said in a statement.

Currently, the tax on gains from investments of more than one year is 1.0% and that from investments of less than a year is 16%.

Last month Romanian stock market regulator CNVM said it would suspend the taxation of deals in securities for three months as of October 1.

Most Romanian stocks tumbled by more than 12% on Wednesday morning and the BVB suspended trading shortly after. The heavy losses came as the markets in Asia and Europe were rattled by concerns the credit crisis will worsen and will lead to a global recession.

The BVB will resume trading on Thursday.