Wednesday, March 18, 2009

Romania wants to keep tax levels in IMF talks-Boc

BUCHAREST, March 18 (Reuters) - Romanian Prime Minister Emil Boc pledged to keep the current level of taxes, including the flat-rate income tax of 16 percent, as his government negotiates the conditions for aid from the International Monetary Fund.

'Talks on a potential increase on the flat tax would endanger the business environment,' Boc told a business seminar on Wednesday.

Romania has approached the European Union and the IMF for economic support which would make it the third member of the bloc to seek outside help to ride out global financial turmoil, after Hungary and Latvia.

An IMF mission arrived in Bucharest last week to hold loan talks and is due to leave town next week.

It was not clear whether the Fund has asked for possible tax hikes to shore up Romania's fiscal stance but sources say talks focus mostly on the deficit level and public spending cuts.

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