The taxable income rates and the annual personal exemptions and the exemptions for maintained persons will be increased next year by adjusting them to the inflation rate forecast for 2014 (4.3%), IPN reports, quoting a bill with amendments to a number of pieces of legislation, which includes the fiscal and customs policy for 2014.

The tax rate of 7% will be applied to private individuals for incomes of 27,852 lei, as against 26,700 lei this year. For incomes higher than 27,852 lei the tax rate will be 18%.

The annual personal exemption will be 9,516 lei, as opposed to 9,120 lei in 2013, while the increased annual personal exemption – 14,148 lei, in comparison with 13,560 lei this year. The annual exemption for every maintained person will be 2,124 lei, up from 2,040 lei.

According to the Ministry of Finance, the move is aimed at supporting the private individuals on low incomes and at gradually shifting the fiscal pressure on the middle and higher income groups. The cost of this fiscal policy measure is 84 million lei.