Flat tax rate advocated by PM advisor

Junior Chamber International (JCI) Romania, a young entrepreneur organisation headed by Alexandru Popa, Prime Minister Adrian Nastase’s economic advisor, suggested on Monday that a flat tax on both income and profit should be introduced as of 2005. The flat tax recommended should be somewhere between 14% and 18%. Slovakia introduced an 18% flat tax rate as of January 1. “The introduction of a flat tax needs to be a priority of the fiscal strategy,” JCI’s proposal states. The organisation also includes Tiberiu Vespan, advisor of the Finance Minister, who was not however present when the proposition was made. It is claimed that a flat rate of income tax equal to the profit tax would stimulate work and reduce tax evasion. “Such a measure cannot possibly be considered unjust,” JCI said. ZF