Parliament has passed a law project with 56 votes to reduce taxes and raise income.
A unique rate of 12% will be introduced to the income tax for individuals starting with October 1st.
According to the project, the income tax for individuals will be reduced from 18% to 12%. At present, the taxation of individuals is 7% tax on income of up to 33 thousand lei and 18% for those exceeding this amount.
Also, the personal exemption will be increased to 24,000 lei annually, and for persons with disabilities in connection with participation in fighting for the integrity of the country and those in Afghanistan will increase from 16800 lei to 30,000 lei.
For families with children, there will be an increase in the allowance for persons maintained from 2 520 lei to 3 000 lei, and in the case of persons with disabilities, due to a congenital or childhood disability, from 11 280 to 18 000 lei. At the same time, the major exemption of 18,000 lei will be granted also for people with severe disabilities.
The project also regulates the mechanism for calculating income tax for individuals for the current year by setting each stage of the 2018 tax period.
The social security contribution paid by the private sector employer, higher education institutions and sanitary institutions will be reduced from 23% to 18%. It is paid by private sector employers operating in special conditions ranging from 33% to 26% and employers in agriculture from 16% to 12%.
The project also provides for the introduction of a 10% reduced VAT rate for accommodation and food, except for goods subject to excise duty, delivered by businesses in the context of accommodation and catering.
The legislative initiative also foresees the increase of the repayment term of money from 2 to 3 years for the sale-purchase, barter, export-consignment contracts, including the 3-year repatriation term for the other contracts.
The project also provides for the introduction of a tax regime for the wage income of drivers operating within the economic agents providing taxi passenger transport services.