Ponta added these taxes represent a source of income for local administrations and it is their duty to secure the funding they need.

Local taxes were last increased in 2009, during Emil Boc’s mandate as prime minister.

According to the latest draft of the Government ordinance, in 2013, local authorities may keep the level of local taxes and fines unchanged at the level set in 2012.

The decision to increase or decrease local taxes could be adopted within 20 days from the coming into force of the ordinance, and local budgets will be compensated with the increased amount of taxes and duties from the state budget.

Ponta said the ordinance will be published Wednesday in the Official Journal.

Mid-December, the government approved an increase of local taxes and duties by up to 16.05% in 2013. In October, the Finance Ministry published a decision draft indexing local taxes and duties for inflation for the past three years, which translated into an increase of 16.05%.

Government spokesperson Andrei Zaharescu said then the local councils could decide on whether to increase or decrease the local taxes within a 20% margin.