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Gov’t gives up plan to tax tips, to introduce lump sum levy

May 15, 2015

BUCHAREST, Romania (AP) — Romania’s finance minister says the government is scrapping a plan to tax tips because it would be too difficult to implement.

Eugen Teodorovici said he met leaders from the restaurant and taxi sectors Friday who convinced him that the measure was hard to put into practice.

Under the planned legislation, businesses would have issued a separate receipt for tips starting June 1 and they would have been counted as taxable income.

Instead, the government plans to introduce a lump sum tax for companies next year, meaning businesses will pay a fixed amount regardless of current earnings Teodorovici said.

It is very common to leave tips in Romania, including in shops and gas stations, due to low wages in the European Union state.

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