Romania Looking To Lower Social Security Taxes - Fin Min

04.14.2011 By Florentina Dragu

Romanian Finance Minister Gheorghe Ialomitianu on Thursday said the ministry considers reducing the social security contributions paid by employers to relax labor market conditions.

Romanian Finance Minister Gheorghe Ialomitianu on Thursday said the ministry considers reducing the social security contributions paid by employers to relax labor market conditions.

"We're analyzing a series of anticyclic measures and we take the matter of social security contribution very seriously," Ialomitianu told a seminar organized by the Foreign Investors Council.

He said the potential cut in social security contribution will be decided after consultations with the International Monetary Fund and the European Commission.

Ialomitianu said the ministry doesn't consider lowering the value added tax rate, because such a measure would reduce budget revenues.

"We can't afford to reduce this tax," he added.

The ministry's state secretary Gheorghe Gheorghina said earlier this month that the government is looking to cut general social security contributions to 41% from 44% presently by reducing the taxes paid by employers.

Romanian employers pay social contributions between 20.8% and 30.8% per employee, along a series of other taxes on healthcare, unemployment, dangerous work conditions etc.