The World Bank report is still secret, although the authorities should have demonstrated transparency and presented it publicly. The tax proposals are aimed at what we all know: the elimination of special tax promotions, as well as the oddity: a progressive tax on labor.

The World BankPhoto: AA/ABACA / Abaca Press / Profimedia

It should be noted that they are better off pushing the idea of ​​a global income tax if they do go that route.

Cursdegovernare received the document but could not publish it due to copyright.

According to the cited source, to “increase equity and improve work incentives for low-income workers,” the World Bank suggests:

  • Abandoning the flat tax rate – “Reassess the merits of the current personal income tax rate structure and consider introducing a progressive rate program for earned income.”
  • Cancellation of benefits for workers in agriculture, construction and IT sectors.
  • Reducing the overall burden on low-income workers by: either eliminating the 10% health care contribution (and fully funding health care) or introducing a refundable earned income tax credit to offset part of the health care contribution burden health and/or pensions for low-income workers.

Other recommendations:

  • Abolition of reduced VAT rates, such as those charged on restaurants, hotel accommodation, books, newspapers, magazines, museums, zoos, gardens and parks.
  • Cancellation of preferential VAT rates for food products, pharmaceutical products, water supply, firewood and heating.
  • Increase in property taxes: “With the transition to a market value tax base, reassess the entire tax structure to increase total revenues above current levels (low among EU countries).”

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