The new emergency ordinance is set to be approved soon.

Last week, the government approved an increase of local taxes and duties by up to 16.05% in 2013, updating them with the inflation rate for the last three years and leaving it to local councils to decide whether to increase or decrease local taxes within a 20% margin.

The government estimated local budget revenues would increase by RON527.73 million.

Prime Minister Victor Ponta said last week the government was only calculating the total inflation rate of local authorities but could not decide on the level of taxes and the decision would be left to local councils, which could cut taxes by 4% or increase by maximum 36%.

The decision allowing the increase of local taxes and duties has not been published in the Official Journal so far.