Monthly tax paid by taxi drivers could increase to 1,000 lei

“The fiscal policy in times of crisis when many things are uncertain cannot be relaxing or aimed at increasing taxes and duties. It must be wise and allow maintaining a balance in the society,” Minister of Finance Veaceslav Negruta said during a program on Radio Moldova, Info-Prim Neo reports. “We cannot significantly reduce the taxes and duties because we have to pay salaries, pensions and allowances. On the other hand, we cannot raise the salaries of the teachers, doctors and other categories of budget-paid employees as this would mean increasing the taxes for the real sector of the economy. But the economic entities are in a difficult situation. We must ensure a balance between these interests. Therefore, the fiscal policy for next year and for a medium-term is much the same,” Negruta said. The progressive taxation system for individuals will be maintained until 2013. The tax rates will remain unchanged – 7% for incomes of up to 25,200 lei and 18% for incomes that exceed this sum. The personal exemption for 2011 will be 9,000 lei, by 900 lei higher than in 2010. In 2013, it will be 15,000 lei. For maintained persons, the yearly exemption in 2011 will be 2,220 lei, while in 2012 and 2013 it will be 25% of the minimum subsistence level. The common tax of 10% on the revenues of companies will be reintroduced in 2012. The general and private concessions on the income tax will be preserved. The obligatory state social insurance contribution will remain 29% - 23% paid by the employer and 6% paid by the employee. In 2011- 2013, the contribution paid by the employer will be reduced to 21%, 19% or 17% if the companies increase the salary fund by 10%, 20% or 30% respectively. The compulsory health insurance premium will not be modified during the next three years. It will remain 7% as in 2010, paid equally by the employer and employee. The farmland will start to be taxed according to its market value in 2010, while the residential buildings and houses in rural arras – in 2012. Veaceslav Negruta said the local parking tax will be increased 8 times, from 6 lei to 48 lei a year per square meter. A tax of 1,000 lei a month will be paid from 2011 for providing taxi passenger transportation services in municipalities, towns and villages. A common tax will be introduced in 2011 on a number of entrepreneurial activities, including car repair, running of restaurants and bars, dental services, hairdressing services. The tax will include the VAT, local taxes, taxes for natural resources and the road toll.