According to the Government’s calculations, exempting people with low incomes from the 16% tax would benefit about 600,000 people.
Boc on Tuesday attended a tri-partite council meeting with representatives of unions and employers. Unions urged the Government to raise the minim wage to RON1,030, but the prime minister said a raise to RON700 is all the state budget can take at the moment.
People close to the talks told MEDIAFAX the Government is looking at exempting people earning up to RON1,000 from income taxes but they would still be required to pay social security contributions.
Finance Minister Gheorghe Ialomitianu said two weeks ago Romania and the International Monetary Fund were negotiating a RON30 raise in the minimum wage.
The Government raised the minimum wage from RON600 to RON670 one year ago, to cover inflation for 2009 and 2010.