Romania could introduce 1-3 pct tax on corporate turnover

Romania plans to replace a flat 16 percent tax on corporate profit with a progressive tax on turnover of 1-3 percent, incoming Finance Minister Ionut Misa told reporters on Thursday.

Earlier in the day, the ruling Social Democrats unveiled plans to overhaul taxation. In addition to changes to the flat tax on income and profit, the finance ministry is also running the numbers on a "solidarity contribution."

Misa said preliminary calculations indicate it would apply for people earning more than 14,500 lei ($3,630.72) per month.

He also said he was committed to keeping the budget deficit at the European Union's ceiling of 3 percent of gross domestic product, and that if tax collection does not improve he could thin out the number of public sector employees.

Parliament is expected to approve the new cabinet later on Thursday. ($1 = 3.9937 lei)

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)