CAS to drop again in 2007

“Social security contributions will continue to drop as of January 1, 2007 by two percentage points, to a total 45.5% after an identical cut operated in 2005, Finance Minister Sebastian Vladescu, told ZF. More generous, Varujan Vosganian, head of the Budget-Finance Committee of the Senate and one of the authors of the economic programme of the Alliance (governing Romania), says the drop could reach 3 percentage points. Besides the cuts in the taxation of the workforce, next year should bring a series of increases in secondary taxes, included in the project modifying the Fiscal Code. Varujan Vosganian stated yesterday that the Government would discuss the project in today”s meeting, so that the document could be debated in Parliament next week. Finance Minister Sebastian Vladescu, however, avoided to indicate a deadline by which the draft would be approved by the Executive. ZF