George Mucibabici, Deloitte chief: "I believe we're going to have a rising VAT"

„I believe we will have a rising VAT. Nobody will touch the unique income tax, because it would oppose the trend in the neighbouring countries. A higher VAT would handle several of the current problems, but it could lead to perverse effects as well.

This would be the prime time for a profound restructuring of the fiscal system” Deloitte chief George Mucibabici declared. A unique tax means that every individual contributes according to one’s incomes. Mucibabici believes it should stay 16% and be paid by everybody.

„The issue of the progressive tax triggers butterflies in my stomach. It’s like we would take from the rich and give to the poor”, Deloitte’s chief considers. „It is not fair to punish the ones earning, taxing them more, because they will look for solutions, starting with fiscal emigration (…)”, he goes on.

According to him, the 16% are only in theory, because in reality, it gets to 22%, if one calculates all the details. Deloitte Romania chief George Mucibabici used to be a commercial banked during 2001-2005 for Tiriac Bank and worked for the Romanian Central Bank before. He also worked for the IMF for two years and from 2003-2004 was member of the Romanian Credit Office’s managing Council.