Health Ministry Announces Introduction Of 33 Innovative Drugs
The list of compensated and free medical drugs has been updated on a quarterly basis this year and 33 innovative molecules have been introduced, the Health Ministry said in a statement.
According to the ministry, the new drugs target both patients suffering from illnesses with no therapeutic alternative and for oncologic and hematologic problems, diabetes and HIV/SIDA.
Also, in 2017, the prices of 55 drugs have seen decreases of 10% to 80%. (jurnalul.ro)
Romanian Senate Adopts Split VAT Bill
Romanian senators on Tuesday adopted a bill making separate payment accounts for value-added tax mandatory for companies with bad records in VAT payments and insolvent businesses.
Senators voted 54 to 45 to adopt the bill.
Romania’s government adopted a decree late August making separate payment accounts for the value-added tax mandatory as of January 1, 2018 for all companies. The move, which the government said it would introduce to curb tax evasion, was criticized by businesses and financial analysts as excessive and hasty. The bill was later amended in Parliament to include only insolvent companies and companies that registered delays in VAT payments.
The bill must be adopted by the lower house of Parliament and signed by the head of state to become law.(capital.ro)
1% Tax On Turnover To Affect Nine In Ten Firms In Romania
90% of firms active in Romania will be affected by the planned 1% tax on turnover, a measure which brings a reduction of RON631 million in taxes paid, and could trigger the loss of 112,153 jobs, according to Iancu Guda, president of the Association of Financial-Banking Analysts.
„The 1% flat tax on turnover for companies with revenue below EUR1 million may bring a reduction of approximately RON631 million in taxes paid by these companies. It is a win situation for 27% of these firms, namely, the companies with revenue below EUR0.5 million and zero employees, as well as firms with revenue of EUR0.5 to EUR1 million and a gross profit of over 6.25%. Only 3% of companies lose and the rest of 70% pay an identical tax. However, the final impact is way smaller because some 112,153 jobs could be lost, namely, approximately 2% of the employed workforce and the increase in minimum wage can annul up to half of the respective fiscal optimization”, said Guda.
Starting January 1, 2018, all companies with a turnover below EUR1 million will pay a 1% tax of turnover. Also, the minimum gross wage rises to RON1,900 as of 2018, compared with the current level of RON1,450. Firms with revenue of EUR500,000 to EUR1,000,000 currently pay a 16% tax on gross profit. Thus, the implementation of a 1% tax on turnover will have a differentiated impact depending on their profitability. (jurnalul.ro)
PM Tudose: Wages Won’t Decrease After Transfer Of Contributions From Employers To EmployeesPrime Minister Mihai Tudose and Finance Minister Ionut Misa told a meeting on Tuesday that switching the paymnet of some social security contributions from employers to employees in 2018 will not have a negative impact on wages, either in the public or in the private sector.
According to a Government press statement, the central topics of the talks held at the Government House between the prime minister, Cabinet members and leaders of the major confederations of trade unions and employers’ associations in Romania targeted a draft emergency ordinance amending the Tax Code, with emphasis on switching the pay of social security contributions from employers to employees, and an increase in the minimum wage.
About transferring the pay of some social security contributions from employers to employees in 2018, Tudose and Misa reiterated this measure will not have a negative impact on wages, either in the public or in the private sector.
“We have talked with business leaders and wages will increase. The business community told me there was an opportunity to pay people better,” said Tudose. (puterea.ro)