Wednesday, July 1, 2009

Romania cbanker says against any hikes in main taxes

BUCHAREST, July 1 (Reuters) - Romania's central banker Mugur Isarescu said on Tuesday he was against any increases in main tax rates because of their potential impact on the shrinking economy.

Romanian media have reported that the ruling coalition is discussing potential increases in taxation, but Prime Minister Emil Boc has denied any talks were taking place.

'Even discussing such an idea looks totally inappropriate,' Isarescu told reporters. 'From the point of view of (budget) revenues, such a move would not bring any gains ... Against the background of falling economic activity, it would have a negative impact.'

Romania has a flat income tax rate of 16 percent.

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