The most important topic of the past week has been the coming into effect of the Fiscal Code. According to the new Fiscal Code, 2016 comes with lower prices on products and services given the VAT rate decrease to 20% and in some cases of up to 9%, as well as the cut on the tax on dividends to 5%. Having to meet investors' need of a stable and predictable fiscal policy, the Government faces a major fiscal change, namely the decision of whether no-income individuals should contribute to the social insurance program. The Government is currently considering removing the contribution to the public health services fund for persons who have no income, and in this way amending the Fiscal Code. According to the proposed provisions, people with no reported income should pay health contributions amounting to 5.5% of the minimum gross wage, or RON 57 (EUR 12.6) per month. So far the Government has only expressed such an intention, as the actual change is yet to be taken.
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