Income tax will be smaller and the personal tax exemption higher

The income tax for some categories of persons will be smaller, while the personal tax exemption will increase. These amendments to the Fiscal Code were recently operated by the Parliament. The income tax for the categories of persons who have an annual income of up to MDL 16200 will constitute 7% and for the ones with incomes up to 21000 lei – 10%. At present, these taxes constituted 8 and respectively 13%. At the same time the personal tax exemption was increased up to MDL 5400, previously - MDL 4500. As well the Fiscal Code stipulates that the unpaid fiscal obligations amounting up to MDL 100 are not considered debt to the national public budget. According to the Minister of Finance Mihai Pop these legislative adjusting was made for the categories of citizens with small incomes. The aforementioned amendments will come into force on January 1, 2007 and were made within a bill containing amendment proposals for 71 laws which is a result of Government’s Activity Program for 2005-2009 “Modernization of the country – People’s wellbeing”, the Objectives of the Fiscal-budgetary policy and fiscal administration for a medium term (2007-2009) as well as of the provisions of the Fiscal reform Concept approved by the Parliament.