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IMF Urges Romania to Pursue ‘Ambitious’ Tax Reform to Trim Gap

June 10, 2022, 10:22 AM

Romania’s government must urgently seek additional sources of tax revenue to reduce its budget deficit as funding conditions deteriorate and public debt levels rise, the International Monetary Fund said.

The IMF report, which estimates that Romania will probably miss this year’s budget deficit target of 5.8% of gross domestic product, adds pressure to leaders in Bucharest who have clung to a flat-tax system in a nation with one of the lowest shares of state revenue to economic output in the European Union.

Romania needs to overhaul the system to tax higher incomes as part of a package that would generate ...