May 18 (SeeNews) - Romania's prime minister Nicolae Ciuca said on Wednesday that the government does not plan to raise any taxes this year but the fiscal policies will be revised.
"This year the tax system will not be changed, we will not have new taxes. All we have to do next is to find the solutions for a fiscal optimisation," the prime minister said during a press conference after meeting with the local business.
Ciuca added that he has tasked the finance ministry with drafting proposals to improve the country's fiscal policies in two weeks.
The prime minister did not comment on recent calls by Social Democrat Party (PSD) chairman Marcel Ciolacu and labour minister Marius Budai for a switch to a progressive tax rate for all types of income.
Romania currently has a 16% income tax, but some professional groups such as employees in IT and construction, and agricultural workers are exempt from it. Pensioners receiving more than 2,000 lei pay 10% tax.
Companies with a turnover higher than 1 million euro ($1.05 million) pay a 16% tax on their profits. Firms with no employees with a turnover lower than 1 million euro pay a 3% tax on profit, while those with employees pay 1%.
Romania's coalition government comprises the National Liberal Party (PNL), PSD and the Democratic Alliance of Hungarians (UDMR) led by liberal Nicolae Ciuca.
(1 euro=4.9472)