The modification of the tax rates will very seriously subsidize companies. These will pay less to the state and will this way preserve the own capital, Iurie Mihalachi, the president of a group of companies, was quoted by IPN as saying in the talk show “Issue of the Day” on Canal2 channel.

According to him, this is considerable support for companies. “When the budget deficit is rather large and you take such steps, I think this is an act of heroism. But I don’t know how long the budget will endure this period of lower taxes,” stated Iurie Mihalachi. The entrepreneur voiced hope this will lead to a rise in the amounts collected as taxes and the budget revenues will thus rise. In this case, when the companies keep their capital, they can increase salaries.

Director of the Market Economy Institute  Roman Chirca said the phenomenon of unofficial payment of salaries reached worrisome proportions and only a measure to reduce the contribution to the social insurance fund cannot help to fully eradicate this phenomenon, but the approach is appropriate. “Maybe a part of the small and medium-sized companies will be motivated to start to work officially,” he stated, noting this is an efficient solution, unlike all kinds of sterile campaigns “Don’t accept salary “in envelope”.

In a press briefing after the Democratic Party's weekly, Prime Minister Pavel Filip, the first deputy chairman of the PDM, said the income tax for private individuals will be reduced from 18% to 12%. The employer’s contribution to the social insurance budget will be declined from 23% to 18%, while the personal exemption will be raised to 24,000 lei.