The flat tax rate cut will diminish budget receipts by RON4.8 billion in 2019, but will also trigger additional revenue worth RON2.3 billion from VAT, social contributions, tax on salaries, and from creating new jobs, with a budget impact totaling RON2.5 billion.
By cutting the flat tax rate, the government anticipates an additional economic growth of nearly 0.5 percentage points, the increase of the number of jobs by 50,000 and an additional investment growth of 1.1 percentage points.